India’s largest private sector lender, HDFC Bank, has raised the interest rate on its three- to five-year Foreign Currency Non-Resident (Bank) [FCNR(B)] dollar deposits by 25 basis points (bps) to 6.25 per cent from 6 per cent, effective August 1, as banks intensify efforts to mobilise foreign currency deposits under the Reserve Bank of India’s (RBI’s) concessional swap scheme.
The rate increase comes as the RBI’s special swap window enters its final two months, a period expected to see the strongest mobilisation of FCNR(B) deposits.
Among large private sector lenders, ICICI Bank and Axis Bank continue to offer 6 per cent on three- to five-year dollar FCNR(B) deposits. State Bank of India (SBI) is offering 6 per cent on five-year FCNR(B) deposits of over $1 million.
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