merisarkar news service
New Delhi, December 08, 2010
BPLR still lower than peer banks: PNB
Punjab National Bank has decided to increase interest rates on retail term deposits to align it with the prevailing market rates for the wholesale deposits.
The increase in deposits rates is introduced to mobilize funds to meet the projected credit growth commensurate with the off take in busy season.
With the current hike, the highest interest rate on retail term deposits will be 8.50% and offered in the buckets of 5 years and above upto 10 years. In addition to this it will also be applicable to 1000 days deposits.
The highest rate payable to senior citizen now stands at 9.00%. The revised rates becomes effective from December 08, 2010.
To partly offset the impact of increase in cost of deposits, PNB has decided to hike its BPLR by 75 Basis Points. The revised BPLR will now be at 12.5% with effect from 08.12.2010.
Even after the revision BPLR of PNB will be matching with that of the lowest BPLR of the peer Banks.
