Banks, in an attempt to increase the inflow of foreign funds are hiking the NRE deposit rates. The hike is considerable enough and is likely to lure customers to invest with the banks.
Lenders like YES Bank, Karnataka Bank, South Indian Bank and Federal Bank have already increased their NRE rates. Recently, some more banks have also made announcements to do so.
Second largest private sector lender HDFC Bank, has increased the NRE deposit rate for a maturity period of one-to-two years on a amount above Rs. 1 crore to 9% from 3.82%.
Other lenders like Allahabad Bank, Lakshmi Vilas Bank and Dhanlaxmi Bank also have increased their NRE deposit rates across various maturities.