PNB hikes term deposit rates by up to 100 bps, BPLR by 75 bps

Punjab National Bank (PNB), the second largest among India's state-run banks, today announced a revision in the rate of interest by 50 bps to 100 bps on single domestic term deposits of select maturities, effective 8 December 2010.

The revision will take the peak rate for retail deposits of up to Rs10 crore to 8.50 per cent.

PNB also revised its base prime lending rate (BPLR) by 75 bps from 11.75 per cent to 12.50 per cent effective 8 December.  

The hike is in line with the Reserve Bank's advise to banks in India to raise deposit rates in order to mobilise resources for a higher economic growth.

The State Bank of India and Bank of India had yesterday announced hikes in term deposit rates.

"Considering the current liquidity scenario of the system, peer bank rates on deposits and other macroeconomic factors, Punjab National Bank has hiked interest rate on single domestic term deposit in the segment of Rs1 crore to Rs10 crore in selected buckets," the bank said in a web site release.

PNB had earlier announced an upward revision in interest rates on NRE fixed deposits and FCNR (B) for dollar, pound Canadian dollar, Australian dollar and euro deposits of 3 years and above, effective I December 2010.

The maximum rate of interest in NRE fixed deposits is 2.75 per cent for deposits of 3 years to 5 years and 6.76 per cent in FCNR (B) for Australian dollar.