SBI TRIMS FCNR DEPOSIT RATES

State Bank of India on Friday realigned its dollar denominated FCNR (B) deposit rates by snipping them a tad at the short-end of the maturity spectrum, even as it upped the rates on other maturities by over 30 basis points.

In the case of Foreign Currency Non-Resident (Bank) deposits denominated in euro, Canadian dollar and Australian dollar too, the bank revised the interest rates by marginally cutting the rates at the short-term – deposits of one year and above but less than two years – and raising the rates on deposits in four other maturity buckets of over two years tenure.
SBI raised the interest rates on pound sterling denominated FCNR(B) deposits across the board by 3 basis points (at the short-end) to 37 basis points (at the long-end).

In the case of yen denominated deposits, depending on the maturity, the bank has cut the interest rates by 2 to 6 basis points. The changes in interest rates are effective from January 1.

Following the revision in interest rates, a short-term US dollar denominated FCNR(B) deposit will earn an interest of 1.98 per cent (2.02 earlier) and a five year duration long-term deposit will fetch 3.94 per cent interest (3.36 per cent).

SBI also revised Non-Resident External (Rupee) term deposit rates. While the bank pared the interest rate on a deposit of one year to less than two years by 4 basis points to 2.73 per cent, it raised the interest rates on deposits of two years to less than three years by 38 basis points to 3.14 per cent and on the three years to five years deposit by 48 basis points to 3.79 per cent.

Source: http://www.thehindubusinessline.com/2010/01/02/stories/2010010252290800.htm