The Chennai based Indian Bank, has slashed its interest rates on FCNR (B) non-resident foreign currency deposits. The new rates have become applicable from 1 October. The new rates for fixed deposits in US Dollars and having maturity period of more than 1 year but less than two years, has become 2.97 percent, a reduction from the present rate of 3.03 percent.

Similarly, the interest rates for deposits of more than 2 years but less than 3 years have been reduced to 2.38 percent, reducing from the existing rate of 2.42 percent. The deposits with maturity period ranging from 3 years to less than 4 years have become 3.45 percent as compared to the existing rate of 3.50 percent. Term deposits of more than 4 years but less than 5 years have been lowered to 3.58 percent from 3.66 percent. Deposits of 5 years are carrying interest rate of 3.75 percent, after been reduced from 3.87 percent.

It should be noted that this is the second revision of FCNR deposit rates by the bank. Earlier, in September also the bank revised rates on Foreign Currency Non Resident deposits.

Also yesterday, public sector lenders Union bank of India and Oriental bank of Commerce to slashed their rates on FCNR deposits.