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PNB Reduces BPLR by 50 bps from 13% to 12.50%
New Delhi, February 26, 2008
Board of Directors of Punjab National Bank has reduced its
BPLR by 50 bps from 13% to 12.50% effective 1.3.2008 with a
view to give impetus to credit growth.
This measure will benefit all the borrowers availing loans
with rate of interest linked to BPLR based on credit risk
rating. Maximum benefit will accrue to small borrowers
including pensioners, small and medium enterprises, and those
availing education loans.
In addition, bank has also selectively reduced interest rates
by 50 bps on loans which are not linked to BPLR such as
Housing loans above Rs.20 lacs, where interest rates will be
in the range of 9.50% to 10.50% (against the existing rates
ranging from 10% to 11%). The interest rates in respect of
loans granted for second house have also been reduced by 50
bps. The interest rates on housing loans upto Rs.20 Lacs
continued to be the lowest in the range of 9% to 10% as
compared to peer banks.
Bank has also reduced rate of interest on car loans and
consumer loans (personal loans) by 50 bps to 100 bps.
Bank has progressively been reducing the deposit rates from
July 2007 onwards and has also been consciously reducing the
dependence on bulk deposits at higher rates to reduce the cost
of funds. The lag effect of these measures will start accruing
resulting in lower cost of funds. The impact of all these
measures will, therefore, be revenue neutral.
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