A recent report said that the country’s second largest lender Punjab National Bank (PNB) has raised both its lending and deposit rates by up to 75 basis points after the rate revision by the RBI.
Reports said that the base rate or the minimum lending rate has been increased by 75 basis points to 10.75 per cent and the Benchmark Prime Lending Rate (BPLR) has been hiked by similar percentage points to 14.25 per cent. All the new and existing loans, including home loan, auto loan for individuals and those for the corporates are expected to become expensive by at least 75 basis points. Reports also said that the bank has raised interest rate on term deposits on select maturities.
Reports added saying that Oriental Bank of Commerce (OBC) also has hiked its lending and deposit rates. The bank has hiked its base rate and BPLR by 50 basis points to 10.75 per cent and 15 per cent, respectively.
Earlier the bank reported a marginal decline of 2.4 per cent in its net profit at Rs 354.7 crore for the first quarter ended June 2011, due to rise in provisions and contingencies. The bank had posted a net profit of Rs 363.3 crore in the same quarter a year ago.