Punjab National Bank (PNB), the country's second largest public sector lender, has announced an increase in domestic term deposit rates, varying from 25 basis points to 100 basis points, across various maturities.
With this revision, the peak rate on domestic retail term deposit will now be 9.25 per cent for maturity period of 1111 days, the state-run lender said in a filing with the Bombay Stock Exchange (BSE).
The new rates are applicable to domestic term deposits of less than Rs1 crore, PNB said in its filing.
Along with the revision of deposit rates, the bank also decided to hike its Base lending rate by 50 bps to 9.50 per cent and BPLR by 50 bps to 13 per cent.
PNB said the revision in interest rates has been undertaken to align with the RBI stance and the changing liquidity and other macroeconomic conditions in the economy.
The hike in deposit rates would compensate investors who save in bank accounts for the negative real rates resulting from rising inflation.
While the peak rate on single domestic retail term deposit will now be 9.25 per cent for maturity period of 1111 days, senior citizens will continue to get an additional benefit of 50 basis points over and above the rates, PNB said.