ICICI Bank ups foreign currency deposit rates by up to 175 bps

The country's largest private sector bank, ICICI Bank today hiked interest rates on foreign currency deposits by non residents by up to 1.75 per cent.

The hike in the Foreign Currency Non Resident (FCNR–B) Deposits, applicable from May 8, is across currencies in different maturities ranging from one to five years, it said in a statement issued here.

The move comes within a week of Reserve Bank hiking interest rate caps on foreign currency deposits by the diaspora in its quest to arrest slide in the rupee.

Under the revised rules, the country's banks can offer interest rates, which would be 3 per cent above the international benchmark for deposits in the three to five year maturities from the earlier 1.25 per cent.

The cap has been kept at 2 percent above international benchmark for deposits of less than three years. ICICI Bank said in the under three years maturity, it has hiked rates by 0.75 per cent while for the three-five years category, the hike is 1.75 per cent.

Under its newly-announced rates, a five year US dollar deposit will earn a non resident an interest of 4.11 per cent, while the same for over one year but under two years is 3.05 per cent.

PTI