Lakshmi Vilas Bank has hiked the interest rate on Non-Resident External (NRE) term deposits with immediate effect.
The hike in interest rates on NRE term deposits was based on the deregulation of interest rates by the Reserve Bank of India, LVB said in a statement.
According to the revised structure, the interest rates for deposits with a period of one year and above but less than two years has been revised to 10 per cent from the existing 3.82 per cent.
For a term period of two years and above, but less than three years, it has been increased to 8 per cent from 3.51 per cent (existing).
For those deposits that are up to three years and above, the interest rates has been hiked to 7 per cent from 3.64 per cent, it added.
Lakshmi Vilas Bank currently serves 1.81 million customers. It has 274 branches and 381 ATM networks across the country, the statement added.