PNB hikes foreign currency deposit rates by 50 bps

Punjab National Bank, India’s second largest public sector bank, today hiked interest rates by 50 basis points for non-resident deposits in foreign currencies including US dollar, Euro and British Pound.

The bank also raised interest rates by 50 basis points for rupee deposits by non-residents. The hike in deposit rates are effective from today.

Reacting to the sharp dip in the value of the rupee yesterday, the Reserve Bank of India has raised the ceiling on interest rates on non-resident deposits by 50 basis points to encourage the inflow of foreign currency deposits and to strengthen rupee.