Lord Krishna Bank ups FCNR deposit rates

Lord Krishna Bank has revised the interest rates on foreign currency non-resident (FCNR) deposits accepted in all permitted currencies with effect from June 12, 2004, to record a high of 3.59 per cent per annum on US dollars for a period of three years.

"The revision is in sync with the current market trends. Our customers will be delighted to learn that our interest rates on FCNR deposits are the best rates available in the market. The revision on interest rates on domestic term deposits have also been kept very attractive," R M Nayak, managing director and CEO, Lord Krishna Bank.

Interest rates on Great Britain pound (GBP) and euro have been increased to 5.33 per cent per annum and 3.11 per cent per annum for the same period respectively.

As stipulated by the RBI, interest rates on non-resident external account (NRE) deposits were also revised on June 1, 2004 offering a maximum of 3.52 per cent per annum for three-year deposits.

For domestic term deposits, Lord Krishna Bank has reduced the interest rates by 25 basis points or 0.25 per cent on maturity bonds of '181 days to less than one year' and 'three years and above' with effect from June 21, 2004.

Interest rates on deposits in all other maturity bonds remain unchanged. The revised rates are applicable only in respect of fresh deposit and renewal of existing deposits. The interest rates on saving bank deposits remain unchanged at 3.5 per cent.

The bank will offer special rate of interest on all term deposits of senior citizens, which is 0.5 per cent higher than the normal interest rates.

Recently, the bank concluded a rupee drawing arrangement with Arabian Exchange in Doha, facilitating remittances from Indian expatriates in the State of Qatar.

With inward money transfer arrangements already existing in other countries in the Middle East, which include the Al Ansari Exchange, UAE Exchange, Wall Street Exchange, Federal Exchange, the bank expects to garner sizeable volume of deposits both on their FCNR and NRE segments in the near future.

The bank also executes payments from 192 countries favouring the resident beneficiaries in India through a separate tie-up with Western Union Financial Services, USA.

The bank has initiated steps for business re-engineering as per the recommendations of Price Waterhouse Coopers.