Banks raise forex-related deposit rates

Banks are beginning the new fiscal by raising interest rates on deposits linked to foreign exchange currencies. Private sector ICICI Bank has raised interest rates on NRE fixed deposits and NRE savings accounts with effect from April 1, 2005. Public sector Bank of Baroda (BoB) and Punjab National Bank (PNB) have also revised upwards rates on NRE term deposits.

ICICI Bank has upped the interest rate on NRE savings account by 61 basis points from 2.79 (Jan. 2005) to 3.40 per cent. In the case of NRE fixed deposits, rates have moved in a range of 33-47 bps, depending upon the various maturity periods.BoB has hiked NRE term deposit rates to 4.40 from 4 per cent on deposits having a tenure of one year and above, but less than two years.