New Delhi: Feeling competitive pressure, public sector lender Punjab National Bank (PNB) has increased the interest rates on deposits of more than Rs 1 crore to 0.5 percent. Earlier, the country’s largest lender, State Bank of India (SBI) has also decided to increase the interest rates on large deposits by up to 1 percent. This increase in interest rates on deposits before the December 2 biennial review meeting on December 6. Has been. In the previous review meeting, RBI had kept interest rates unchanged at 6%.
PNB said in a statement that it has increased the interest rates on domestic deposits of 1 year or more from 4.50 per cent to 5 per cent. New deposit rates will be effective December 1, 2017. Samiko Securities Chief Executive Jimit Modi, reacting to the increase in interest rates, said that this indicates that the availability of additional cash generated due to the ban was ended.
This has made two things clear. First, the interest rates will not go down soon, but it has increased the possibility of faster growth. Second, the situation of high liquidity created for some time seems to have ended. Although interest rates have been revised in the context of large deposits, SBI has kept interest rates unchanged on deposits of small amounts. The interest rates on deposits of short duration (7-45 days) were increased from 4.75 per cent to 3.75 per cent and for 5-10 years deposits it would increase from 425 per cent to 5.25 per cent.