PNB follows SBI in raising bulk deposit rates

SBI raised interest rate on the shortest tenor deposit to 4.75% from 3.75%

State-owned Punjab National Bank (PNB) has raised its interest rate on bulk deposits over Rs 1 crore by 50 basis points, to five per cent, a day after the country’s largest lender, State Bank of India, decided to raise its rate on these deposits across tenors by 100 bps. Bulk deposits are those of at least Rs 1 crore.

These increases come a few days ahead of the Reserve Bank’s bi-monthly policy review, on Wednesday. The earlier review saw the policy rate unchanged at six per cent.

On the PNB move, Jimeet Modi, chief executive at Samco Securities, said this