The 2nd biggest PSU lender in the country, Punjab National Bankmay be increasing its deposit rates by 25-50 basis points shortly. The increase in deposit rate follows the recent increase in repo and reverse repo rates by RBI during the monetary policy review.
Mr Nagesh Pydah, PNB Executive Director said, “The deposit rates may increase by 25 and 50 basis points across different time baskets and we will take a call on it in our next Alco (Asset Liability Committee) meeting, which will take place in a day or two”.
He added, “If the deposit rates are raised, definitely there will be an impact on lending rates also. But there will be a lag in raising lending rates”.
He also said, “There was a move to revise the lending and deposit rates in the last Alco meeting, but we deferred it and waited for the outcome of RBI’s monetary policy”.
The bank anticipates a rise of 20% in its deposits and 24% in loans for this fiscal.
Pydah said, “We have kept out growth level of deposit and lending two to three per cent higher than the RBI’s guidance for this year”.