Punjab National Bank, India's second largest public sector bank, hiked
interest rates by 50 basis points for non-resident deposits in foreign
currencies including US dollar, Euro and British Pound. The bank also
raised interest rates by 50 basis points for rupee deposits by non-resident
Indians. The hikes in deposit rates are effective from today.
Reacting to the sharp dip in the value of the rupee yesterday, the
Reserve Bank of India has raised the ceiling on interest rates on non-resident
deposits by 50 basis points to encourage the inflow of foreign currency
deposits and to strengthen rupee.