PNB Hikes Bulk FD Rates By 25 Bps Effective From Today: Details Inside

The state-owned bank Punjab National Bank (PNB) has announced an interest rate hike on bulk fixed deposits of Rs 2 Cr and above. Following the revision the bank has hiked interest rates by 25 bps on tenors and as per the official website of the bank the new bulk FD rates are effective from 01.09.2023.

PNB Bulk FD Rates

The bank will continue to give an interest rate of 6.00% on bulk deposits that mature in the next 7 days to 45 days, and PNB will continue to pay an interest rate of 6.40% on deposits that mature in the next 46 days to 60 days. PNB will keep paying interest at a rate of 6.25% for deposits held for 61 days to 90 days and 6.50% for deposits held for 91 to 270 days. The interest rate on deposits that mature in 71 days to less than a year has increased by 25 bps from 6.50% to 6.75%, while the interest rate on deposits that mature in a year has remained the same at 7%.

The bank will continue to pay interest at a rate of 6.50% on bulk FDs maturing in over a year and up to three years, and PNB has maintained its interest rate at 6.25% on FDs maturing in over three years and up to five years. On deposits with a tenor of more than five years and up to ten years, PNB will continue to pay an interest rate of 5.60%.

"The rates for Rs.2 Crore to Rs.10 Crore are not to be loaded with additional rate of interest for Sr. Citizens, staff accounts etc," mentioned PNB on its website.

Meanwhile, PNB has also hiked MCLR by 5 bps across tenors. The new MCLR will be in force from today 1st September. The 1 year MCLR now stands at 8.65% following the revision.

According to PNB website, "The MCLR should be revised monthly by considering some factors including the repo rate and other borrowing rates. Specifically the repo rate and other borrowing rates that were not explicitly considered under the base rate system. As per the guidelines, banks have to set benchmark rates for different tenure or time periods ranging from overnight (one day) rates to one year. Further banks will have an option of publishing MCLR of any other longer maturity.

The methodology uses the marginal cost or latest cost conditions reflected in the interest rate given by the banks for obtaining funds (from deposits and borrowing) while setting their lending rate. This means that the interest rate given by a bank for deposits and borrowing are the decisive factors in the calculation of MCLR."