The largest lender in the country, State Bank of India has also joined the league of banks that have increases their foreign deposit rates.
The NRE deposit rates of SBI have been increased from 3.82% to 9.25% for a maturity period of one-to-two years for amount less than Rs. 1 crore. Interest rate for deposits above Rs. 1 crore for the same duration will earn 9% of interest rate.
The revised rates for the bank will be applicable from January 1, 2012. Only fresh and renewed maturity deposits will be eligible to earn according to the revised rates.
Private sector lenders, Kotak Mahindra Bank and Federal Bank have also announced revisions of deposit rates in the same category. Kotak Mahindra Bank has revised its deposit rates for period of one-to-two years to 9.25%. Deposits for tenure of two-to-three years will earn an interest of 9%. The new rates are applicable with immediate effect.