Home / Industry / Banking /  PNB to hike lending rates by 5 bps across tenures from 1st December

Punjab National Bank (PNB), one of the largest public sector lenders in the nation, has stated that beginning tomorrow, its MCLR (Marginal Cost of Funds Based Landing Rate) will increase by 5 bps. According to a stock exchange filing, the bank increased MCLR across all tenors by 5 bps. Prior to this, on 01-11-2022, PNB increased the MCLR across tenors by 30 bps. The interest rate on advances linked to MCLR/RLLR + BSP is presently at 0.25%.

Effective after the announcement, the overnight MCLR has been hiked from 7.40% to 7.45%, 1-month MCLR hiked from 7.45% to 7.50%, the three-month MCLR hiked from 7.55% to 7.60%, six-month MCLR hiked to 7.75% to 7.80%, 1-year MCLR goes up from 8.05% to 8.10% and 3-year MCLR goes up from 8.35% to 8.40%. Due to the Marginal Cost of Funds Based Lending Rate (MCLR) hike of 5 basis points, PNB customers who have taken out loans will now pay higher EMIs. On new car loans, the One Year MCLR+0.10% is presently 8.15%, and for old car loans the one-year MCLR+1.10% is presently 9.15%.

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PNB MCLR (bseindia.com)

PNB's net profit for Q2FY23 was 411 crore, up 33.4% on a quarter-on-quarter basis, while operating profit for the quarter was 5567 crore, up 38.5% YoY. Net interest income grew by 30.2% YoY to 8271 Crore in Q2 FY23 while global NIM climbed by 61 bps to 3.00% from 2.39% in Q2 FY22. The bank reported a cost-to-income ratio for Q2 FY23 of 49.93%, an improvement of 834 bps on a year-on-year basis. Furthermore, retail credit climbed by 16.95% on a year-on-year basis to 155409 Crore as of Q2FY23. The bank's CASA share is 44.91% of domestic deposits, while its GNPA ratio grew by 315 bps to 10.48% in Q2FY23 from 13.63% in the year-ago quarter.

As of 30th September’22, the bank has 10038 Domestic branches, rural branches of 3863, semi-urban branches of 2445, urban branches of 1998 & 1732 branches in the metro area. International branches stood at 2, whereas 12966 number of ATMs and 20447 BCs reported by the bank in Q2.

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