PNB raises lending rate by 40 bps

On Friday, State-backed, India’s second-biggest lender Punjab National Bank (PNB) announced that it has increased its external benchmark linked lending rate by 0.40 percent to 6.90 percent and it will be effective from June 1.

With this, PNB joins the list of several banks including ICICI Bank, Bank of Baroda, and Bank of India, which increased their interest rates after the RBI increased its repo rate on Wednesday.

The Punjab National Bank, in a regulatory filing, said The Repo Linked Lending Rate (RLLR) has been increased from 6.50 percent to 6.90 percent with effect from June 1, 2022, for existing customers. However, for new customers, the revised RLLR will be effective from May 7, 2022. Other than this, the lender also increased the savings deposit rates for various tenors.

For term deposits of less than Rs 2 crore, it has increased the interest rates to up to 5.10-5.15 percent. Customers will receive interest rates in the range of 3.50 - 4.05 percent per annum, for single term deposits of Rs 2 crore and up to Rs 10 crore, The bank further informed that all other interest rates will remain unchanged.