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More scope of cut in lending rates: PNB chief

More scope of cut in lending rates: PNB chief
PTI
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First Published: Thu, Apr 02 2009. 04 38 PM IST
Updated: Thu, Apr 02 2009. 04 38 PM IST
New Delhi: Country’s second largest state-owned lender Punjab National Bank today said that there is more scope for cut in lending rates.
“Interest rates will remain volatile and scope of reduction is there”, PNB chairman K C Chakrabarty told reporters ahead of the meeting of bankers and industry chambers with the cabinet secretary K M Chandrasekar today.
The bank’s Asset Liability Committee (Alco) will meet by the end of the month to take a view on the interest rates, the PNB chief said.
The Alco meeting will assume importance as it would be held after the announcement of the annual monetary policy by the Reserve Bank of India on 21 April.
Responding to the initiatives taken by the RBI, the PNB had reduced the benchmark prime lending rates by 50 basis points to 11.5% with effect from 1 February.
Pointing out that lending by PNB witnessed an increase of 28% during 2008-09, Chakarbarty said, “advances are expected to rise by 20% in the current fiscal”.
Having grown by 25% in 2008-09, the PNB chief hoped that deposits could register a rise of 19 to 20% during the new fiscal which began yesterday.
Cabinet secretary K M Chandrasekar is meeting the heads of major banks and representatives of the industry chambers to take stock of interest rates and availability of credit.
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First Published: Thu, Apr 02 2009. 04 38 PM IST