ICICI Bank raises foreign currency deposit rates

ICICI Bank , India’s No. 2 lender, raises foreign currency deposit rates by up to 175 basis points, effective May 8. It raised rates for 1 to 2 year tenure by 75 basis points and for 3 to 5 year tenure by 175 basis points.

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.

[caption id=“attachment_304171” align=“alignleft” width=“380” caption=“CICI Bank has hiked rates by 0.75 percent for deposits of under three years maturity. Reuters”] [/caption]

Under the revised rules, the 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 percent.

The cap has been kept at 2 percent above international benchmark for deposits of less than three years. ICICI Bank has hiked rates by 0.75 percent for deposits of under three years maturity, while for 3-5 years category, the hike is 1.75 percent.

Agencies