Punjab National Bank Raises Lending Rates By 0.40% To 6.90%

State-owned Punjab National Bank (PNB) on Friday said it has hiked its external benchmark linked lending rate by 0.40 per cent to 6.90 per cent with effect from June 1.

The move comes a day after several lenders, including ICICI Bank, Bank of Baroda and Bank of India, raised interest rates following the RBI's surprise repo rate hike on Wednesday.

The Repo Linked Lending Rate (RLLR) has been changed from 6.50 per cent to 6.90 per cent with effect from June 1, 2022 for existing customers, PNB said in a regulatory filing.

For new customers, the revised RLLR will be effective from May 7, 2022, it said.

PNB also increased the savings deposit rates for various tenors.

For term deposits of less than Rs 2 crore, it has raised the interest rates to up to 5.10-5.15 per cent.

For single term deposits of Rs 2 crore and up to Rs 10 crore, customers will get interest rates in the range of 3.50 - 4.05 per cent per annum.

PNB said all other interest rates shall remain unchanged. The change in rates will also be applicable to NRE / NRO term deposits (Callable only) scheme.

"The revised interest rates will be applicable to fresh deposits and renewal of existing deposits with effect from 07.05.2022," it added.

In an out of turn Monetary Policy Committee (MPC) meeting, the Reserve Bank on Wednesday hiked the benchmark repo rate - the short term lending rate it charges to banks - by 0.40 per cent to 4.40 per cent with immediate effect, aimed at taming soaring inflation.