PNB Pune circle to have 16th branch

Punjab National Bank (PNB) is opening its 16^th branch in Pune. Anil Bhan, Pune circle head of PNB informed that the new branch will be inaugurated at Hinjewadi and it will start operations from December 5.

As per press note at present the Pune Circle of the bank is covering nine districts of western Maharashtra but after the opening of this branch it will have a total of 50 offices under its jurisdiction. PNB is having a nationwide network of about 4,600 offices.

Bhan, “Taking into consideration the diverse requirements of customers, we have opened 6 more branches in Pune Circle in the last one year. We have also provided 26 more ATMs. With this, the total number of ATMs has now become 44. Through Internet banking, customers can do banking operations from anywhere now”.

He further added, “We are committed to meet the necessities of customers like home loans, car loans and education loans. During the current financial year alone, we have disbursed more than Rs 175 crore under various retail schemes”.

He informed that there major focus will be on providing loans to students to pursue higher studies. “During the current financial year, we have sanctioned loans amount to Rs 10.54 crore to 280 students”.

To instill the banking habit in young students and poor stratum of society, the bank will also provide the facility of ‘zero balance PNB Vidyarthi and PNB Mitra accounts’, and this scheme will not carry any service charges. The press release stated “In the Pune Circle, with a view to provide relief to distressed farmers, we have waived/written off agriculture loans of Rs 551 lakh of 1,689 farmers,”.

Hinjewadi has developed as an important IT hub, therefore considering this fact bank new branch at Hinjewadi is expected to focus on IT companies and professionals.

PNB for second time reduces rate, others may follow suit

Punjab National Bank (PNB) a public sector lender on Wednesday reduced its benchmark prime lending rates by 100 basis point. This is the second reduction done in four weeks. It is believed this might encourage those banks to cut rates that have left rates unchanged.

The bank informed in a stock exchange filing that by the coming Monday, PNB’s benchmark prime lending rate (BPLR) will come down to 12.50 per cent. It further added the revised BPLR will be applicable for all existing and new accounts linked with BPLR where rates are being charged at BPLR and above.

Earlier on October 31, PNB had reduced BPLR by 50 basis points. “Since interest rates have moved southward, we have decided to cut rates. Quality of assets is crucial and we want to send a message to good borrowers,” the bank’s chairman and managing director K C Chakrabarty said.

An HDFC Bank executive when contacted said the bank will be reviewing rates next week at the asset-liability committee meet. According to Axis Bank sources bank is looking at the cost of funds. “It appears that the lending and deposit rates may follow a downward trend. We expect a decision soon,” the executive added.

While the United Bank of India Chairman & Managing Director S C Gupta said that it will be thinking a cut of 50 basis point in deposit rates on Monday. “We have to take a call on lending rates. If other banks lower their rates, we will follow suit,” he added.

Indian Banks Association Chairman T S Narayanasami stated private banks, which have so far not reduced their lending rates, are believed to do so in the coming days. But the Banks like Union Bank of India, which have already reduced their lending rates, said that they have no plans to review lending rates immediately as deposit rates are continued to be high.

“During the same time last year, deposit rates were 150 basis points lower than the current rate. Unless deposit rates fall, there is little chance of a review in PLR,” said Union Bank Executive Director T Y Prabhu.

However PNB also said that it is planning to reduce peak deposit rate from 10.50 per cent a year to 9.50 per cent for deposits with tenure of one-three years. As a result, interest rates in the time period with maturities of 180 days and above have also been reduced by 25 to 100 basis points with effect from December 1.

Moreover there is an expectation of further measures by RBI in the coming days to increase growth, central bank governor D Subbarao is planned to meet the heads of large banks on Friday to evaluate the liquidity situation and take stock of credit flow.