India’s second biggest public sector bank, Punjab National Bank has stated that it would not be hiking interest rates in the immediate period saying that there is adequate liquidity in the system.
PNBChairman K R Kamath said, “There is no problem of liquidity … (therefore) no possibility of interest rates going up now”. This means the personal loans offered by PNB will not be affected.
Kamath also stated that the everyday transactions in the repo and reverse repo windows fall in the range of Rs 50,000 crore to Rs 1 lakh crore, which show a secure liquidity status.
The bank also denied any intentions of raising funds from the capital market stating that it had adequate funds and does not require any fund raising scheme.
But Kamath has accepted that the bank raises debt quite periodically. He also said that the bank maintains a frequent watch on the debt market and any event occuring there.