State-owned Punjab National Bank (PNB) has raised the interest rates on fixed deposits by up to 60 basis points in selected buckets from today.
“The revised interest rates will be applicable to fresh deposits and renewal of existing deposits with effect from May 7 this year,” ANI reported quoting an official statement issued by the bank.
PNB’s new term deposit rates are applicable on deposits of up to Rs 10 crore. For term deposits between Rs 2 crore and Rs 10 crore, interest rates for deposits maturing between 30 and 45 days have been increased by 60 basis points.
For deposits maturing between 271 days and less than a year, the FD rate has been hiked by 50 bps. Term deposits of less than Rs 2 crore will see a 10 -20 bps increase in interest rates.
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Under the new rate regime, term deposits of less than Rs 2 crore (non-callable) with a maturity bucket of more than 1 to 2 years will attract an interest rate from 5.05 to 5.15 percent.
For deposits of Rs 2 crore to Rs 10 crore (callable) and maturity bucket between 5 and 10 years, the interest rate will be 3.50 to 4 percent.
The interest rates for all other deposits will remain unchanged, the bank said. However, the rate hikes will be applicable to NRE / NRO term deposits as well.
At the same time, the state-owned bank has raised its external benchmark linked lending rate by 0.40 percent to 6.90 percent from June 1 for existing customers. For new customers of the bank, the revised lending rates will be effective from May 7.
The hike in the lending rates comes on the back of a surprise 40 basis points, or 0.40 percent, hike in benchmark repo rate by the Reserve Bank of India (RBI). The benchmark repo rate is the short-term lending rate RBI charges to banks. The central bank also raised the Cash Reserve Ratio (CRR) by 50 basis points to tackle rising inflation in the country.
Apart from PNB, ICICI Bank and Bank of Baroda have also hiked lending rates following the RBI's surprise repo rate hike on Wednesday, PTI reported.
(Edited by : Sudarsanan Mani)