Oriental Bank hikes FCNR interest rates

Public sector lender Oriental Bank of Commmerce (OBC) has hiked its offered interest rates on foreign currency non-resident (banks) deposits. The deposit rates have been revised on all maturities from one to five years for US dollars, British pounds, Euros, Australian dollars, Canadian dollars and Japanese Yen. The interest rate hike ranges from 75-175 basis points and took effect from May 8. The OBC move comes close on the heels of the Reserve Bank of India raising the interest rate ceiling on such deposits from 125 basis points above London inter-bank offered rate (LIBOR) to 200 basis points for maturity periods of one year to less than three years, and to 300 basis points for maturity periods of 3 to 5 years.