PNB to decide on revising of interest rates by June-end

On Thursday public sector lender Punjab National Bank announced that by the end of this month it will take decision on revising the interest rates in the wake of hike in the short-term lending rate by quarter percent by the Reserve Bank.

Punjab National Bank Chairman and Managing Director K C Chakrabarty told reporters "We will take a call on increasing deposit and lending rates by the end of this month. Our ALCO (Asset Liability Committee) would examine".

On June 11 RBI had raised the repo rate by 0.25 per cent to 8 per cent in view of this some of the banks have raised both the deposit and lending rates.

Although the country's largest lender SBI at present has decided against upward revision of the interest rate.

Yesterday, Bangalore-based public sector lender Vijaya Bank announced the hike in deposit rates by 0.3 per cent to 8.8 per cent for maturity between 1-2 years.

Bank of Baroda is also expected to review the interest rates during the month.

During the week, private sector lender Yes Bank has also increased its Prime Lending Rate by 0.5 per cent to 16 per cent and the deposit rates by same percentage points.

Previously the bank had increased its fixed deposit rate to 9.5 per cent against 9 per cent while for senior citizens it was raised to 10 per cent compared to 9.5 per cent earlier.

Last week another private sector lender, Jammu & Kashmir Bank revised its PLR by 1 per cent to 14 per cent last week.