The Hindu Business Line : No scope for rate cuts on loans: PNB

New Delhi, Oct 18 Punjab National Bank (PNB) expects to register 18-19 per cent growth in its topline as well as bottomline this fiscal, its Chairman and Managing Director, Dr K.C. Chakrabarty, has said.

He also ruled out any reduction in interest rates on advances during the festival period, stating that the bank does not believe in such steps.

“We do not want to misguide our customers”, Dr Chakrabarty told reporters on the sidelines of an industry event here on Thursday.

“There is no scope for reducing interest rates now on both deposits as well as advances. We will also wait for the RBI’s monetary policy review and then respond”, he said.

Dr Chakrabarty said that he expects the net interest margin to be maintained around 3.75 per cent during the remaining months of the current fiscal.

After touching a level of 4.07 per cent as on end-March 2007, the NIM of the bank has come down to about 3.80 per cent as on end-June this fiscal.

He also said that the slowdown in credit offtake this fiscal would not affect margins.

PNB wants to expand its customer base from 3 crore to 10 crore over the next five years and is betting on financial inclusion projects to help achieve this target.

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