PNB to extend Rs 300-400cr to UTI at sub-PLR
New Delhi--Punjab National Bank has agreed to extend Rs 300-400 crore line of credit to Unit Trust of India to help tide over the liquidity crisis faced by the fund for its flagship scheme US-64.

SS Kohli PNB chairman and managing director said that PNB had decided to extend a line of credit to the tune of Rs 300-400 crore to UTI at a sub-PLR rate of 10 per cent for loans against equities pledged by UTI for a period of six months. The rates may be revised if the credit is extended for more than six months.

He said that the line of credit would be extended at a margin of 35 to 40 per cent against the shares meaning that if a share had a market value of Rs 100 PNB would extend credit to the tune of Rs 60 to Rs 65.

The State Bank of India is believed to have extended Rs 1,500 crore to UTI, while Bank of Baroda has agreed to offer Rs 300 crore at sub-PLR rates.
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