SBI hikes interest rates on FCNR(B) deposits

Mumbai: The State Bank of India has increased interest rates on foreign currency deposits in sterling pound, euro, Australian dollar and Canadian dollar to attract more funds as banks face a liquidity crunch. The increase under the FCNR(B) accounts is for all maturity periods. This follows RBI’s decision to make lending to comm- ercial banks costlier by increasing the repo rate and absorb Rs15,500 crore by increasing the cash reserve ratio.