Axis Bank raised interest rates on foreign currency non-resident (FCNR) and non-resident external (NRE) deposits of tenure more than three years.
The bank raised the interest rate for FCNR dollar deposits on 3-4 years by 100 basis points to 4.78% while rate on deposits over 5 years was raised to 5.56% against 4.56% earlier. For NRE fixed deposits between 3-5 years, the interest rate has been hiked by 75 bps to 9.50% and for tenure between 5 and 10 years, the interest rate has been hiked to 9.25%
The lender had hiked domestic deposit rates earlier this month and also raised it’s base rate by 25 basis points to 10.25%
Public sector lender IDBI Bank had also announced an increase in interest rates for FCNR and NRE deposits on Thursday. The week saw a number of banks raising rates on FCNR and NRE deposits. On thursday, DCB had announced a similar move revising rates to 10.25% for three year deposits. Federal Bank had announced a revision in rates on Wednesday.
RBI said last week NRI fixed deposits with duration of over three years would be exempt from CRR and SLR requirements, making them more attractive for banks.