Dena Bank highest among PSU banks to offer 9.60% interest on NRE term deposit

0
14

INVC,,

Delhi,,

Pursuant to recent deregulation of interest rates on NRE term deposit by Reserve Bank of India, Dena Bank hiked interest on NRE term deposit to 9.60% for maturity period of 1 year and 9.25% for maturity period ranging from above 1 year upto 3 years, which is highest among PSU banks.

Dena Bank while offering the highest interest among PSU banks, aims to grab the opportunity to widen the share of NRE term deposit in an effort to boost NRI deposit portfolio.

Coincidently, Dena Bank observes NRI Deposit Mobilisation Campaign from December 16, 2011 to January 31, 2012 for the current NRIs coming home season.  Dena Bank is quite hopeful that this enhancement in interest on NRE term deposit will certainly facilitate attract more and more of such deposit.

As one of the measures to support economy, through deregulating interest rates on Non-Resident (External) Rupee (NRE) term deposit account, intention of Reserve Bank of India is quite clear to cheer NRIs abroad by prompting them to invest more and more funds with banks in India so as to curb the outflow of funds from India by FIIs (Foreign Institutional Investors) from the stock market.

Looking to the quantum of NRE term deposit as compared to domestic accounts, Indian banks may find this as cost effective even after such huge increase in NRE interest rate.

Now with the steep competition in NRE term deposit interest, Indian banks may prove as heaven for NRIs abroad to have wider choice of banks to park their investment.

The revised interest rates effective from December 23, 2011 are as under :

( Interest in % terms p.a. )

Maturity Period

Revised

Rate

Previous

Rate

1 year only

9.60

3.82

Above 1 year but less than 2 years

9.25

3.82

2 years & above but less than 3 years

9.25

3.51

3 years only

9.25

3.64

LEAVE A REPLY

Please enter your comment!
Please enter your name here