Punjab National Bank to hike repo-linked lending rate from next month
Punjab National Bank (PNB) chief Atul Kumar Goel on Thursday said the bank will raise the repo-linked lending rates from next month.
The move comes against the backdrop of Reserve Bank of India (RBI) hiking the repo rate by 40 basis points (bps) last week amid rising inflation.
Goel, the state-owned lender's MD and CEO, told reporters that interest rates are certain to rise a tad going further.
"With 40 bps rise in repo rate... so according to our policy, from June 1, the same quantum raise in lending rates will be there. So there will be some increase in the loan rate for sure," Goel said.
Repo rate is the rate at which banks borrow short term money from RBI.
With effect from May 7, the city-headquartered lender had raised interest rates on term deposits in select buckets up to 0.60 per cent.
A number of banks have already raise the repo-linked lending rates for their customers after the RBI rate hike. Some have also increased their deposit rates.
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