PNB hikes interest rates on fixed deposits by up to 125 bps
02 January 2018
State-run Punjab National Bank has announced a hike in interest rates on domestic term deposits by up to 125 basis points (1.25 percentage points) in the New Year amidst a general trend of falling interest rates across the banking system.
Effective 1 January 2018, domestic term deposits of up to Rs10 crore of different tenures with Punjab National Bank will carry an additional 1.25 percentage point interest.
For domestic retail term deposits of less than Rs1 crore, the rate has been increased by 1.25 per cent to 5.25 per cent from the current 4 per cent in the maturity tenure of 7 to 29 days.
Similarly, in the maturity bucket of 30 to 45 days, rate has been raised from 4.50 per cent to 5.25 per cent. For the 46- to 90-day deposits, the interest rate would be 6.25 per cent against the earlier 5.50 per cent.
For deposits in the 91 to 179 days maturity, the rate is up from 6 to 6.25 per cent.
For domestic bulk term deposits of Rs 1 crore to Rs 10 crore in the 7 to 45 days maturity, the bank has raised interest rate from 4 per cent to 4.8 per cent.
Similarly, for 46 to 179 days deposits, the rate has been increased from 4 per cent to 4.90 per cent while for deposits of 180 days to less than one year maturity, the rate has gone up from 4.25 per cent to 5 per cent.
For 1-year term, PNB has increased the rate from 5 per cent to 5.7 per cent on bulk term deposits. For the maturity term of more than 1 year to 3 years, the rate would be up from 5 per cent to 5.5 per cent.
In the maturity buckets of 3 years to 10 years, the rate has been increased from 5 per cent to 5.25 per cent effective 1 January 2018.