PNB raises NRE deposit rates to 9.25%

The second-largest public sector lender Punjab National Bank (PNB) today increased interest rates on NRE term deposits ranging one to five year period to 9.25%.

The rates will be effective from January 1, the bank said in a filing to the Bombay Stock Exchange (BSE).

Last week, many other banks HDFC Bank, Yes Bank, Federal Bank, Allahabad Bank and Dhanlaxmi Bank among others had steeply increased the interest rates on select maturities of NRE deposits.

HDFC Bank increased the interest rates on NRE deposits of Rs 1 crore and above with a maturity of one to two year to nine% against 3.82% earlier. It has, however, left the NRO deposit rates unchanged.

The state-run Allahabad Bank has also raised its NRE deposits up to 7.5%. The Kolkata-based bank will now offer 7.5% for one to two years tenor (against 3.82% earlier), 7% on deposits of two to three years (from 3.51%), and 6.75% for those above three years (from 3.64%).

Also, the Kochi-based Federal Bank and Laxmivilas Bank have also increased its interest rates on NRE deposits for various slabs in order to attract non-resident deposits.

Another private sector lender IndusInd Bank also increased pricing 9.25% among the state-run banks Dena Bank offers the highest pricing at 9.6%.

Similarly, Yes Bank came out with a 15 month-and-15 days to 16-month NRE deposit offer, promising depositors 9.60% interest.