The Hindu Business Line : PNB board ratifies PLR hike

The board of Directors of Punjab National Bank (PNB) on Saturday ratified a recent decision of the bank to hike its benchmark prime-lending rate (PLR) by 25 basis points to 11.5 per cent from August 1.

"The board has today endorsed the decision to hike PLR to 11.5 per cent from August 1", Mr K Raghuraman, Executive Director of PNB, told Business Line.

The Reserve Bank of India nominee, Dr Rajan, was also present at the board meeting held in Bhopal on Saturday. As of now, PNB does not have any Government nominee on its board.

The PLR hike decision, which the board approved on July 31, was ratified at Saturday's meeting in the wake of the Finance Ministry's advice to public sector banks to consult their boards before going ahead with any lending rate hike.

Asked whether the July 28 letter of the Finance Ministry was placed at the board meeting, Mr Raghuraman replied in the affirmative. PNB senior management said that the Finance Ministry letter was received on August 2, which was after the July 31 meeting that approved the PLR hike. PNB last raised its PLR on May 1 this year from 10.75 per cent to 11.25 per cent.

On August 1, PNB also revised its home loan rates. For floating rate home loans, interest has been increased by 50 basis points for all repayment tenures except for 20-25 years, wherein the increase is 25 basis points.

More Stories on : Interest Rates | Public Sector Banks | Punjab National Bank

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