India's largest lender, State Bank of India (NSE:SBIN), raised more than $1.5 billion from foreign-currency deposits under a special program launched in June for citizens based abroad, Bloomberg News reported Wednesday, citing people familiar with the matter.
The bank is offering an interest of 5.25%-5.75% on foreign-currency deposits of up to $1 million and 5.5%-6% on deposits above $1 million, with tenures of three to five years, according to the report.
Last month, the Reserve Bank of India offered banks full hedging-cost support on three- to five-year foreign-currency deposits, which allowed them to offer higher rates to boost their foreign exchange reserves during the US-Iran conflict, the report said.
State Bank of India did not immediately respond to' request for a comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)