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SBI launches India Millenium Deposits

Foreign banks and Indian banks have assured State Bank of India to mobilise $ 5 billion for SBI's five-year India Millennium Deposit (IMD) to be raised from non-resident Indians, SBI chairman G G Vaidya said Wednesday.

Vaidya, who announced the launch of the scheme here, said that IMD will be eligible for deposits by NRIs and overseas corporate bodies (OCB) and would be denominated in US dollars, pound sterling and euro.

The chairman told reporters that though SBI is targeting to collect only $ 2 billion through its IMD, it has already received assurance for more than double that amount from foreign and Indian banks.

Vaidya said feedback from the Middle East NRIs has been, particularly, encouraging. "We will retain the amount in excess of $ 2 billion raised before the earliest closing date of October 31," Vaidya said.

The NRIs in the United States may not be eligible to subscribe to the deposits, he said. "Due to applicable regulatory matters in the US, IMD may not be offered, sold, resold, pledged, transferred , assigned or delivered to or within the United States or to United States persons, including NRIS or OCBs located or resident within the United States," Vaidya said.

While the dollar denominated IMDs will carry an interst rate of 8.5 per cent, pound and euro denominated IMDs would have a coupon rate of 7.85 per cent and 6.85 per cent respectively.

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