YES BANK has hiked its interest rates for non resident savings accounts (NRE and NRO) to 6 per cent and 7 per cent for balance of up to Rs. 1 lakh and over Rs. 1 lakh respectively.
Announcement of increase in rate by the India's fourth largest private sector bank came after the Reserve Bank of India (RBI) freed interest rates on non-resident deposits (NRD).
The RBI recently freed interest rates on NRDs to attract more dollars and support struggling rupee.
India's central bank on Friday opened doors to NRI dollars by deregulating non-resident external (NRE) rupee deposits and ordinary non-resident (NRO) accounts, in a move that is expected to support the country's struggling partial-convertible currency.
The Reserve Bank of India (RBI) freed banks to determine their own interest rates on savings and term deposits. Previously, there was a cap on how much interest banks can pay on savings and term deposits.
However, the RBI stressed that banks interest rates to be paid by banks must be comparable to local deposit rates.
The Reserve Bank of India (RBI) has increased interest rates as many as thirteen times over the last two years to fight back inflation, but the central bank is now expected to easy policy to support economic growth.
It is the recently announced steep and surprise decline in industrial production that has reportedly pressuring the RBI to change its policy.
However, some analysts do not expect the central bank to hack its repo rate and cash reserve ratio.
The RBI will review its policy on Friday, December 16.
There is sufficient liquidity in the Indian banking system, and the Reserve Bank of India (RBI) would take appropriate steps at the appropriate time to infuse more liquidity, the central bank's deputy governor KC Chakrabarty said.
When asked if there is a possibility of the central bank to infuse more liquidity in the system, Chakrabarty said, "There is sufficient liquidity in the system. As for cash reserve ratio, the text books say that it is one of the tools that can be used... you should wait for December 16."
In conversation with reporters on the sidelines of the India Economic Summit on Sunday, Chanda Kochhar –Managing Director and CEO of ICICI Bank – said that the "worrying" trends in the economic scenario worldwide could have a notable effect on the capital flows to India.
SBI, Asia’s largest bank, has been passing from a strenuous period. Therefore, the government has decided to help the state-run bank.
The Government has announced that it would inject somewhere around 45 billion to 80 billion rupees in the bank as a part of its fund scheme, which would initiate by March 2012.
"The allegations are baseless and we do not know from where they have pulled out these numbers. None of these numbers match with our internal numbers", said Bipin Kabra, the Chief Financial Officer of Kerala-based Dhanlaxmi Bank, in a statement soon after a noteworthy market deviation where the bank shares recovered 5% during afternoon trade.
Dhanlaxmi Bank Ltd. is thinking to drag the All-India Bank Officers Confederation (AIBOC) to courts after its shares fell down due to fabricated report submitted by the AIBOC to Reserve Bank of India.
AIBOC prepared a faulty report and without verifying it with the bank’s management they submitted it to RBI, who in turn asked to submit Rs100 crore as a fine for crossing net worth limit and for showing unaccounted expenses.
If you take home loan from Axis Bank, you have to pay interest rate at 11.75% for the whole tenure: this is the new scheme started by the bank.
By this scheme, Axis Bank has become the only bank which would charge interest rate at an even rate. The loan for the property would be available for 85% and at 20 lakhs and 80% loan would only be available if the loan is above 20 lakhs.