Mumbai: More banks have joined the race for attracting the diaspora money, after a dollar-starved Reserve Bank freed rates on the non-resident accounts, taking the offering to as high as 9.6 percent per annum.
Three more banks have announced hikes in their NRE deposit offerings, with mid-size lenders Yes Bank and Dena Bank coming out with the highest offerings of 9.6 percent.
The announcements follow similar ones made earlier by peers like Federal Bank, Dhanlaxmi Bank and HDFC Bank, among others, following the RBI decision to free the rates on December 16 to stem the massive slide of the rupee, which had hit 54.30 to a dollar on the previous day.
State-run Dena Bank has come out with a one-year deposit product offering a 9.60 percent yield as against 3.82 percent earlier. At the lower end, deposits of over one year but under 3 years will fetch an interest of 9.25 percent.
Similarly, new-age private sector lender Yes Bank has come out with a 15 months 15 days to 16 months deposits, which will fetch a depositor 9.60 percent interest, a statement said.
Yes Bank's peer in the private sector lenders space, IndusInd Bank too has increased pricing 9.25 percent, it said in a statement.
"The increased interest rates, backed by the appreciating dollar, will have a considerable impact on the rupee flows coming into the country," the bank's head of consumer banking Sumant Kathpalia said.
The RBI move gave banks the freedom to fix rates on non-resident external rupee deposits and ordinary non-resident accounts with immediate effect.
First Published: Sunday, December 25, 2011, 13:14