SBI raises interest rates on foreign currency deposits

State Bank of India, the country's largest lender, today announced an increase in interest rates on foreign currency non-resident bank deposits (FCNR (B) and non-resident external (NRE) rupee term deposits.

Accordingly, FCNR(B) US dollar deposits of one-to-less-than-two-year maturity will now attract a rate of 1.92 per cent (1.84 per cent) while deposits for 2 years to less than 3 years will carry a rate of 2.24 per cent (2.08 per cent), SBI said in a release.

Deposits of 3-4 years, 4-5 years, and 5 years tenures will attract interest rates of 2.84 per cent (2.69 per cent), 3.34 per cent (3.20 per cent) and 3.75 per cent (3.62 per cent), respectively, the bank said.

For euro deposit of 1-2 years and  2-3 years, the rates have been revised to 2.19 per cent (2.20) and 2.49 per cent (2.45 per cent) respectively.

For NRE deposits of 1-2 years, 2-3 years and 3-5 years, the interest rates have been revised to 2.67 per cent (2.59 per cent), 2.99 per cent (2.83 per cent) and 3.59 per cent (3.44 per cent) respectively.

Meanwhile, SBI has extended its special low-interest home loan scheme to 30 April 2010. The bank, however, will not offer teaser rates for loans less than Rs50 lakh. The bank did not make any announcements about the loan extension.

As per the scheme, all home loans will attract an interest of 8 per cent during the first year, 9 per cent in the second and third years and a floting rate thereafter.