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New Delhi, July 30 On the heels of the Reserve Bank of India announcing its ‘dear money’ policy on Tuesday, Punjab National Bank (PNB) has decided to raise its benchmark prime lending rate (PLR) by 100 basis points to 14 per cent with effect from August 1.

The country’s second-largest public sector bank by assets also decided to hike its deposit rates by 75-100 basis points across various maturities to make them more competitive in the market. The deposit rate hike would also be applicable from the same date.

“These decisions have been taken today looking at the extraordinary situation prevailing and to provide better returns to the depositors. Today the inflation rate is almost 12 per cent. We will not be able to induce the people to save unless we increase the deposit rates. We also hope to protect our net interest margin at 3.5 per cent,” Dr K. C. Chakrabarty, Chairman & MD, told reporters here.

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

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