HDFC Bank, ICICI Bank raise NRI dollar rates to 6.25%
Business
HDFC Bank and ICICI Bank just bumped up interest rates on their US dollar deposits for nonresident Indians (NRIs), hoping to attract more foreign cash before a special Reserve Bank of India scheme (RBI) wraps up on September 30.
ICICI's new rate is 6.25% for deposits of US $5 million or more, while HDFC has matched that for three- to five-year deposits, both reflecting recent jumps in global benchmark rates.
Hikes help Indian banks attract dollars
With borrowing costs rising worldwide and banks competing harder than ever, these hikes help Indian banks stay attractive to overseas savers.
As one banker put it, raising rates now is key to pulling in dollars before the RBI scheme ends.