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PNB to hike lending, deposit rates

PNB to hike lending, deposit rates
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First Published: Thu, Jun 26 2008. 10 53 AM IST
Updated: Thu, Jun 26 2008. 10 53 AM IST
Reuters
New Delhi: Punjab National Bank (PNB) expects to maintain profit and loan growth targets for this year, despite the central bank’s interest rate hikes, its chairman and managing director said.
The state-run lender also plans to raise lending and deposit rates by up to 50 basis points from 1 July, in response to the central bank’s last rate hike and has scheduled a board meeting on 27 June, K.C. Chakrabarty told Reuters late on 25 June.
“Net interest margin (NIM) is under pressure, but we will be able to maintain it around 3.5%. We hope for 20-22% profit growth,” he said.
“The bank may have to make provisions of Rs1-1.5 billion for depreciation of its bond portfolio in the quarter to 30 June,” he said. The bank reported a net profit of Rs20.49 billion 2007-08.
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First Published: Thu, Jun 26 2008. 10 53 AM IST