Punjab National Bank Hikes Rates On Term Deposit

Punjab National Bank yesterday announced its decision to raise interest rates on term deposits of one year and above by 0.5 per cent. The revised interest rates will be between 8.5 and 10 per cent. The decision comes in the wake of the Reserve Bank of India's decision to raise bank rate by 100 basis points. The increase in the term deposit rate was taken after the bank raised its prime lending rate from 11.5 to 12 per cent last week, keeping the margins same, PNB officials said. The interest rate on term deposits between one-two years have been raised to 8.5 from the previous 8 per cent, while the rate for two-three years' maturity has been raised to 9 per cent from the previous 8.5 per cent. Rate on deposits of three years and above have been raised to 10 per cent from the previous 9.5 per cent, a Punjab National Bank release said. The rates for deposits of shorter duration have, however, remained unchanged.