Karur Vysya Bank raises 3-5 yr FCNR(B) deposit rates by 437 bps to 7%
This story was originally published at 15:51 IST on 10 June 2026
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--Karur Vysya Bank raises 3-5 year FCNR(B) deposit rates by 437 bps to 7.00%
MUMBAI – Karur Vysya Bank Ltd. raised its interest rates on foreign currency non-resident dollar-denominated bank deposits for tenures ranging from three to five years to 7%, effective Wednesday, according to an update on the bank's website. The asset liability management committee of the bank approved these revised rates at a meeting Tuesday.
Prior to this change, Karur Vysya Bank offered 2.63% per annum on FCNR(B) deposits for a tenure ranging from three to five year deposits. "The revised rates are aimed at attracting incremental foreign currency deposits and supporting the RBI's initiative to augment foreign exchange inflows into the country," the bank said in a note.
The Reserve Bank of India's dollar-rupee swap facility for fresh deposits is applicable on a minimum tenure of three years and maximum tenure of five years. The central bank has allowed banks to price these deposits as per their internal policy, but within the overall regulatory ceiling. As per a median of estimates from 16 market participants polled by Informist, this swap facility is expected to attract inflows of about $43 billion.
For the March quarter, Karur Vysya Bank had reported consolidated net profit of INR 7.25 billion on total income of INR 35.19 billion. Wednesday, shares of the lender ended at INR 272.70 on the National Stock Exchange, down nearly 5%. End
Reported by J. Navya Sruthi
Edited by Akul Nishant Akhoury
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