Development Credit Bank hikes interest rates on non resident (NRE) deposits to up to 10 percent
New Delhi: Indian private sector lender Development Credit Bank Ltd
has hiked interest rates on its non-resident saving (NRE) account to up
to 10% for 18-month deposits, with effect from December 29, 2011, making
it the highest offering ever made by a bank.DCB has revised
interest on Rs 1.5-5 million NRE term deposits for 18 months to 10%,
while that on deposits under Rs 1.5 million for the same period to
9.75%, it said in a statement. The bank has also hiked interest rate on 19-24 month deposits to 9.5%. While,
the rates for deposits under Rs 1.5 million for maturity period of
36-60 months will be 9.3% per annum, and for deposits between Rs 1.5
million and Rs 5 million for the same period will be 9.5% annually, it
said. The bank will also offer NRI (non resident Indian)
depositors the option of selecting an account number of their choice
under -- DCB NRE & NRO Elite Savings Accounts, it added. The
move by the bank comes following Reserve Bank of India's deregulation of
NRE rupee deposits and ordinary non-resident (NRO) accounts to provide
banks better flexibility to mobilize such deposits in view of the
prevailing market conditions. Following the deregulation by RBI,
Indian lenders including Bank of India, State Bank of India, ICICI Bank,
Tamilnad Mercantile Bank, Punjab National Bank, Oriental Bank of
Commerce, Dhanlaxmi Bank, Allahabad Bank, South Indian Bank, Lakshmi
Vilas Bank, Karnataka Bank, Yes Bank and Federal Bank also increased
interest rates on their NRE rupee term deposit schemes across various
maturities. Shares of DCB Bank ended Friday at Rs 31.8 on the Bombay Stock Exchange (BSE), up 0.16% from the previous close.
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