The new rates would be effective 1 July. Photo: Mint
The new rates would be effective 1 July. Photo: Mint

PNB cuts fixed deposit rates by up to 0.25%

PNB has reduced interest rates on retail term deposits by 0.05-0.25% in maturity bucket of 1 year and above; the new rates would be effective 1 July

New Delhi: State-owned Punjab National Bank (PNB) on Tuesday slashed fixed deposits rates by 0.25% on select maturities.

The bank has reduced interest rates on retail term deposits by 0.05-0.25% in maturity bucket of 1 year and above, PNB said in a statement. The new rates would be effective 1 July, it said.

For the quarter ended March 2016, PNB posted a record high quarterly loss by any public sector lender at Rs5,367 crore. The second-largest public sector bank reported a net profit of Rs306.56 crore in the corresponding period of 2014-15.

Provision for NPAs rose more than three-fold to Rs11,380 crore in the fourth quarter as compared to Rs3,281 crore in the same period a year ago.

The Gross Non-Performing Assets (NPAs) rose significantly to 12.9% at the end of March 2016, from 6.55% a year ago. The net NPAs too rose to 8.61% against 4.06% at March 2015.

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