Indian Overseas Bank (IOB), a public sector lender has announced increase in the Non-Resident External (NRE) deposit rates. This move has come in the wake that the foreign deposit rates have been deregulated by the Reserve Bank of India.
The deposit rates across all the maturity periods have been increased to 9.25 percent. This substantial increase in the deposit rate will attract the customer to invest with the bank. Hence, the bank can expect an increase in the inflow of foreign currency.
Leading banks like SBI, ICICI Bank, HDFC Bank and several other banks have already increased their foreign deposit rates.
The revised rates are applicable from January 02, 2012.