Date:11/01/2007 URL: http://www.thehindu.com/2007/01/11/stories/2007011107092100.htm

Business

PNB hikes rate on fixed deposits

Staff Reporter

Move follows rise in gilt rates

Kozhikode : The Punjab National Bank (PNB) has hiked the interest rates on fixed deposits under different maturity periods following the hardening of rates in Government securities market and the credit pickup.

Addressing a news conference here on Wednesday, PNB Zonal Manager S.P. Singh said the bank offered eight per cent interest rates for five years and above and 7.50 per cent for the period from one year to less than three years. During the 180 day to less than one-year period category, the bank offered seven per cent, which is one of the highest among other nationalised banks.

For deposits from Rs.15 lakh to Rs.5 crore, PNB is offering eight per cent for the period from one year to less than two years. In case of bulk deposits of Rs. 5 crore and above the bank gives higher rates of interest depending on the size and period of the deposit.

As of now, the PNB is offering 6.33 per cent on NRE deposits for a period of one year.

The FCNR deposits in U.S. dollars gets 5.33 per cent interest, in GBP 5.58 per cent in EURO 4.02 per cent, in CAD 4.24 per cent and AUD 6.62 per cent for one-year period.

The bank has an exclusive NRI Cell at Zonal Office, Kozhikode, to pay personal attention to NRIs, he said.

The PNB is also offering 8.50 per cent on fixed deposits of five years to 10 years for senior citizens irrespective of the amount of deposit. The bank provides 0.5 per cent additional interest on all slabs (for different periods) for senior citizens.

Mr. Singh also highlighted about PNB Tax Saver Scheme where income tax benefit is available under Section 80(C).

Fixed deposits made for a period of five years up to Rs.1 lakh in a financial year are eligible for benefit under Section 80(C).

S.M. Veerappan, Deputy Zonal Manager, who was present at the meeting, said the PNB would be the third bank in the country and first among the public sector banks to introduce facility of RTGS to the customers through Internet banking. This facility will be introduced from January 15.

PNB's housing loan floating rate interest is quite competitive in the market.

The bank gives housing loans at nine per cent for five years repayment, 9.25 per cent for 10 years and 9.50 per cent for 20 years.