The recent hike in policy rates by Reserve Bank of India has pinned up a rise in interest rate hike by public sector banks too. Many lenders including the likes of Punjab National Bank have increased interest rates of deposits as well as advances by as much as 100 basis points.
Lenders like Punjab & Sind Bank (PSB), PNB and Allahabad Bank have increased lending rates by upto 50 bps.
PNB's benchmark prime lending rate (BPLR) saw a 50 bps hike to 13% while Allahabad Bank and PSB raised it by 25 bps each to 13.5% and 14.25% respectively.
All three have increased their respective base rates by 50 basis points. All revised rates are to come into effect from today, February 01, 2011.
There has been a subsequent rise in fixed deposit rates too. Depositors in PSB will get interest of 9.25% on 1000 day deposits.
The 222 and 500 days deposits of the bank would attract interest of 8.25 % and 9% respectively.
Allahabad Bank has introduced 400-day deposit which will offer the depositor an interest of 8.5%.
PNB said that it raised the rates, "in response to changing liquidity conditions in the system, inflation, other macroeconomic factors and monetary measures undertaken by the Reserve Bank".