SBI revises interest rate on FCNR(B) deposits

Moneycontrol Bureau

India's largest lender the State Bank of India (SBI) on Monday revised its interest rates on FCNR(B) (Foreign Currency Non-resident - Bank Account) deposits available in different foreign currencies. While the lender mostly hiked rates in US dollar schemes, it slashed the same with Euro deposits. The new rates are effective from September 01, 2012.

At the same time, SBI introduced four new currencies including Swiss Franc (CHF), New Zealand Dollar (NZD), Swedish Krona (SEK) and Danish Krone (DKK).

Maturities	1 yr and above but less than 2 yrs.	2 yrs and above but less than 3 yrs.	3 yrs and above but less than 4 yrs.	4 yrs and above but less than 5 yrs.	5 yrs only
USD	3.03 (3.05)	2.42 (2.42)	3.50 (3.48)	3.66 (3.63)	3.87 (3.79)
GBP	3.41 (3.49)	2.80 (2.80)	3.83 (3.82)	3.92 (3.92)	4.07 (4.06)
EURO	2.75 (2.90)	2.51 (2.60)	3.64 (3.70)	3.79 (3.86)	3.98 (4.05)
JPY	2.55 (2.55)	2.31 (2.30)	3.32 (3.30)	3.34 (3.33)	3.39 (3.37)
CAN$	4.04 (4.05)	3.42 (3.36)	4.49 (4.45)	4.58 (4.54)	4.67 (4.64)
AUD	6.48 (6.55)	5.15 (5.22)	6.21 (6.28)	6.41 (6.47)	6.50 (6.55)
CHF*	2.36	2.10	3.13	3.21	3.32
DKK*	2.76	2.56	3.66	3.84	4.03
NZD*	5.48	4.72	5.85	6.01	6.16
SEK*	4.70	3.70	4.74	4.78	4.87

Bracketed figures suggest existing rates

Earlier in May, SBI had increased NRI deposit rates by 75-175 bps. It got an encouraging response by mopping up Rs 7,000 crore within 30-60 days. Its NRI deposit book stood at around Rs 70,200 crore till June in 2012-13.  However, it was only around Rs 500 crore that came through FCNR deposits.

NRI deposits are of two types: Rupee deposits wherein a customer directly subscribes a scheme in rupee terms; and FCNR in which a depositor puts money in foreign currencies.