PNB revises deposit rates on FNCR deposits

Bank has lowered the deposit rates to 2.55% from 2.63% for deposits of maturity of 2 yrs and less than 3 yrs

Punjab National Bank today revised its deposit rates downwards on Foreign Currency Non-Resident (FCNR) accounts with maturity of 2-5 years.

The existing rates of FCNR (B) scheme have been reviewed as per the directives of the Reserve Bank, country's second largest public sector bank said in a statement.

"... It has been decided to revise the interest rates on these deposits with effect from July 1, 2012," the bank said in a statement.

In dollar terms, the bank has lowered the deposit rates to 2.55% from 2.63% for deposits of maturity of two years and less than three years.

For maturity of three years and less than four years, it been lowered to 3.63% from 3.71%.

Rates have been cut to 3.78% from 3.87% for maturity of four years and less than five years.

Similarly, the interest rates have been lowered to 3.97% from 4.04% for deposits maturing in five years.

However, the interest rate for maturity of deposits for one year and less than two years has been kept unchanged to 3.07%.

These interest rates will be applicable only on fresh deposits and on renewal of deposits maturing on or after July 1, 2012, PNB said in an update on its website.

The interest rates are valid for the period July 1, 2012 to July 31, 2012, it added further.

FCNR accounts are opened by non-resident Indians and these deposits can be maintained in five designated currencies -- US dollar (USD), pound sterling (GBP), euro, Australian dollar (AUD) and Canadian dollar (CAD).

The interest rates have been revised for other currency accounts accordingly, it said.

These accounts can only be maintained in the form of terms deposits for maturities of minimum one year to maximum five years.

Chennai-based Indian Bank had also revised the interest rates on FCNR deposits yesterday.