ICICI, IDBI Bank up NRE deposit rates

The country's largest private lender ICICI Bank and state-run IDBI Bank today hiked the interest rate on rupee deposits by non-residents.

ICICI Bank will now offer up to 9.25% on non-resident external (NRE) deposits, while IDBI Bank will offer slightly more at 9.50% on the same, the banks said in separate statements here.

The move comes a day after the biggest lender State Bank of India announced a 9.25% offering effective from tomorrow.

However, in a departure from similar announcements by its peers, whose deposit tenors go to a maximum of three years, IDBI Bank's interest offering extends till 10 years, its statement said.

Banks are announcing sharp hikes in deposit rates for the Indian diaspora following the Reserve Bank's move to deregulate interest rates on NRE deposits earlier this month, to attract more dollars into the economy in its bid to arrest steep fall in the rupee value.