Neutral impactSector
HDFC, ICICI Bank rates up for dollar deposits
Economic Times 8 hrs ago·2 Aug 2026, 6:58 pm
HDFC Bank and ICICI Bank have increased their interest rates for dollar deposits to attract foreign currency. This move is part of the FCNR(B) scheme, which offers special rates to encourage overseas investors to park their funds in Indian banks. The move comes as global interest rates have risen, making these deposits more attractive to foreign investors.
For Indian investors, this development is significant as it signals that banks are actively trying to secure foreign capital. Higher dollar deposits can help banks meet their funding needs and improve their liquidity position. This is particularly relevant as global interest rates remain elevated, making foreign currency deposits a more lucrative option for overseas investors.
Investors should keep an eye on the final date for these deposits, which is September 30. It is also important to monitor how other banks react to this rate hike, as increased competition could lead to further adjustments in the coming weeks.
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