PNB revised interest rates on non-resident deposits

Punjab National Bank has increased interest rate on Foreign Currency Non-Resident deposit schemes for dollar. The revised rates will be effective March 1.

According to PNB statement the interest rate on US dollar deposits has been increased up to 3.12 per cent for maturity period of 1-2 years from 2.98 per cent. While on the maturity of 2-3 years, the rate has been changed to 2.69 per cent against 2.57 per cent.

For tenure of 3-4 years, the interest rate has been raised to 3.07 per cent as against 2.93 per cent and on 4-5 years term deposit the revised rate is 3.40 per cent. The rate for fixed deposit for five years being offered is 3.66 per cent.

From March 1 the new NRE Term deposits, rate of interest is 3.87 per cent for maturities of one year to less than two years and 3.44 per cent for maturity in between 2-3 years.

As per statement the interest rate has been raised to 3.82 per cent for the maturity of 3-5 years.

PNB cut in interest rates will depend on inflation

K C Chakrabarty, Chairman of state-owned Punjab National Bank informed that bank may consider on cutting its interest rates further in case inflation continues to fall.

He stated, “Last week, PNB cut its benchmark prime lending rate by 50 basis points to 11.5 per cent, which is the lowest among public sector banks”.

Inflation is indicating lower signals moreover the Reserve Bank of India monetary easing policy, will in turn make possible for banks to cut lending rates.

At present India’s headline inflation rate is a little over 5 per cent from a 13-year high of 12.91 per cent earlier in August. This moderating trend has impelled the RBI to cut its key policy rates.

Ever since October, the central bank has cut Repo Rate by 350 bps, Reverse Repo 200 bps and Cash Reserve Ratio 400 bps with an aim to boost liquidity and lift demand in the drooping economy.

Chakrabarty informed at present the bank has no plan to match State Bank of India’s special home loan scheme, in which it has put a freeze on the interest rate on new loans taken till April 30 at 8 per cent for one year.

PNB branch office inaugurated in Britain’s ‘Little India’

The Punjab National Bank (PNB) opened a branch at Leicester in Britain where a large section of people of Indian origin are staying.

The branch was inaugurated this week in the Belgrave Commercial Centre, in the heart of what is called the Golden Mile - the heart of Asians business and culture. It is also popularly known as 'Little India'.

The branch was inaugurated by the Indian-origin Lord Mayor of Leicester, Councillor Manjula Sood. The branch at present has five staff members. A tradition Hindu religious ceremony was performed at the opening of the branch.

Kamalesh Chakravarty, PNB chairman and managing director, remarked the bank hopes to attract 25 million pounds in deposits in its first year. Chakravarty pointed out, "We are looking at the long term. The credit crunch has had an effect in India but not on the scale seen in other parts of the world."

Earlier he had stated that the bank expects to make a profit of 4 to 5 million pounds in the current financial year. The bank started its operations in Britain in May 2007 aims to open new branches in Birmingham, Manchester, Wolverhampton and London. Already it is having branches in Southall and the City of London.

The bank got support in its move to Leicester by Invest Leicestershire and the East Midlands India Business Bureau.

The Punjab National Bank International is a subsidiary of the Punjab National Bank. Chakravarty informed bank has 4,600 branches in India and 38 million customers; therefore PNB aims to make a profit of 500 million dollars this year.

PNB branch office inaugurated in Britain’s ‘Little India’

The Punjab National Bank (PNB) opened a branch at Leicester in Britain where a large section of people of Indian origin are staying.

The branch was inaugurated this week in the Belgrave Commercial Centre, in the heart of what is called the Golden Mile - the heart of Asians business and culture. It is also popularly known as 'Little India'.

The branch was inaugurated by the Indian-origin Lord Mayor of Leicester, Councillor Manjula Sood. The branch at present has five staff members. A tradition Hindu religious ceremony was performed at the opening of the branch.

Kamalesh Chakravarty, PNB chairman and managing director, remarked the bank hopes to attract 25 million pounds in deposits in its first year. Chakravarty pointed out, "We are looking at the long term. The credit crunch has had an effect in India but not on the scale seen in other parts of the world."

Earlier he had stated that the bank expects to make a profit of 4 to 5 million pounds in the current financial year. The bank started its operations in Britain in May 2007 aims to open new branches in Birmingham, Manchester, Wolverhampton and London. Already it is having branches in Southall and the City of London.

The bank got support in its move to Leicester by Invest Leicestershire and the East Midlands India Business Bureau.

The Punjab National Bank International is a subsidiary of the Punjab National Bank. Chakravarty informed bank has 4,600 branches in India and 38 million customers; therefore PNB aims to make a profit of 500 million dollars this year.

Major PSU banks announced cut in PLR in the beginning of New Year

Major lenders, including public sector Punjab National Bank, Bank of Baroda, ICICI Bank and Dena Bank have announced that they will be reducing their prime lending rate by 50 to 75 basis points with effect from 1 January 2009.

In a filing with the Bombay Stock Exchange, Punjab National Bank, the country's second largest public sector lender informed that it will be also reduceing interest rates on schemes such as floating rate housing loans, car and education loans by 50 bps.

"The interest rates on fixed rate housing loans have been reduced by up to 175 basis points with effect from 1 January," PNB said.

The bank has introduced a housing loan scheme -- PNB Special Housing Loan Scheme. This scheme has been launched for new accounts from 1 January till June 30, 2009.

PNB is also reducing a 100 basis point in its peak deposit rate to 8.5 per cent for deposits of one year to less than three years.

PNB has reduced deposit rates for the second time in one month. Previously this month, the bank had reduced its peak deposit rate from 10.5 per cent to 9.50 per cent. According to filing deposits having maturities of 46 days and above will draw an interest rate of 1.25 per cent from the earlier 1.50 per cent.

In a separate regulatory filing Bank of Baroda said, "The bank has decided to reduce its benchmark prime lending rate (BPLR) by 75 basis points from the existing 13.25 per cent to 12.50 per cent with effect from 1 January 2009."

Dena Bank another public sector lender said it will reduce benchmark lending rate by 75 basis points to 12.75 per cent in accordance to the liberal monetary policy announced by RBI earlier this month.

With effect from Jan1, 2009 the bank's BPLR stands reduced from 13.5 per cent to 12.75 per cent, Dena Bank stated this in a filing with the Bombay Stock Exchange.

ICICI bank private sector lender is offering a New Year gift for its housing, auto and personal loan customers in the form of a cut in interest rates.

Its CEO and managing director K V Kamath said, without giving out details, ''We are looking at cutting interest rates very early in January for our housing and other loan customers''.

The extent of the rate cut is being regulated and will be announced soon, he said.

Before ICICI this month had reduced home loan rates for new customers by up to 1.5 percentage points.

Meanwhile State Bank of India (SBI), the country's largest lender, has also announced a reduction in its prime lending rate by 75 basis points to 12.25 per cent with effect from 1 January. On the other hand home loan major HDFC Bank has also cut its prime lending rate by 50 basis points.

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.