A day after the State Bank of India(SBI) and Union Bank of India?s(UBI) increasing their BPLRs by 50 basis points, few more state-run banks have announced similar hikes in their rates .
Some of the banks that have increased their PLRs on Friday include Punjab National Bank (PNB), Bank of India, Canara Bank and Corporation Bank. While Bank of Baroda?s ALCO is meeting today to take a call on the interest rates, the Bank of Maharashtra was likely to decide on the rate hikes on Monday.
The PNB has decided to increase the BPLR by 50 bps from 12.50% to 13%. The revised BPLR will be applicable in respect of all existing and new accounts, wherever the interest rates are linked with BPLR. Also, the bank has increased interest rates on housing and auto loan by 50 bps.
Bank of India chairman and managing director, TS Narayanasami hinted that his bank would increase its PLR to 13.25% which will be effective since July 1. However, Narayanasami maintained that the rate hike will not be applicable across the board as few of the sectors were likely to remain untouched when the bank?s assets and liability committee (ALCO) meets to discuss the issue on Monday. There are certain segments which can?t take further hit, so we will have to moderate them, said Narayanasami. We will be compassionate on housing, education, auto, consumer loans, so the hike will be quite moderate on those segments, he said. Canara Bank said it will increase its PLR by 50 basis points to 13.25% excluding the retail segments. The Canara Bank chairman and managing director MBN Rao said that the increased PLR, which will be effective since July 1, will not be applicable on home and auto loans. Also, he said that the decision on deposit rates will be taken later. Corporation Bank said it has raised its PLR by 50 basis points to 13.5% with effect from July 1.
The SBI has raised rate on its domestic term deposit having a maturity period of 181 days onwards. In the case of senior citizens, the SBI has increased interest rates on its term deposits to 10% from 9.25% for maturity period of more than one year but less than three years.
While the interest rate for deposits having a maturity period of more than 181 days but les than 1 year has been hi8ked to 8% from 7.50%. The rates for deposits with maturity period of more than one yea but less than 2 years for the bank has been raised to 9.50 from 8.75%. The PNB has decided to increase the deposit rates of the bank from 25 bps to 50bps in some of the time slabs.