The state-owned Punjab National Bank (PNB) said on Friday it had raised its benchmark external policy rate by 0.40 percent to 6.90 percent effective June 1.
The move comes a day after several lenders including ICICI Bank, Bank of Baroda and Bank of India raised interest rates following the RBI’s surprise repo rate hike on Wednesday.
The repo-linked lending rate (RLLR) has increased from 6.50% to 6.90% with effect from June 1, 2022 for existing customers, PNB said in a regulatory filing.
For new customers, the revised RLLR will come into effect on May 7, 2022, it said.
GNP has also increased savings deposit rates for various terms.
For term deposits of less than Rs 2 crore, he raised interest rates to 5.10-5.15%.
For single term deposits of Rs 2 crore and up to Rs 10 crore, customers will enjoy interest rates of between 3.50 and 4.05% per annum.
PNB said all other interest rates will remain unchanged. The rate change will also apply to the NRE/NRO (Callable only) term deposit scheme.
“The revised interest rates will apply to new deposits and renewal of existing deposits from 07.05.2022,” he added.
At an unannounced meeting of the Monetary Policy Committee (MPC), the Reserve Bank on Wednesday raised the benchmark repo rate – the short-term lending rate it charges banks – by 0.40% to 4 .40% with immediate effect, in a bid to tame soaring inflation.