PNB reduces prime lending rate by 0.50% to 12.5%
Punjab National Bank has reduced its prime lending rate by 50 basis points to 12.5% -- the lowest in the industry.
By ET Bureau |
MUMBAI: Punjab National Bank has reduced its prime lending rate by 50 basis points to 12.5% -- the lowest in the industry. The bank has also cut its deposit rates across the board and now has 8.5% as the highest return in 1-3 year period.
Addressing newspersons, the bank's chairman K.C. Chakrabarty said that the cut in lending rates would be revenue neutral and the bank expected net interest margins of 3.4% to 3.5%. As on December 19 the bank has recorded a 29% growth in deposits and 34% growth in advances as on December 19. Between September 12 and December 19 the bank has disbursed loans close to Rs 13,000cr taking its outstanding loan portfolio to Rs 1,37,000cr.
According to Mr Chakrabarty if there are any slippages on account of the slowdown they would emerge only after June `09. He added that while slippages were natural during a slowdown, he expected them to be within control. According to him the bank's gross non-performing assets were unlikely to exceed 4% while the net non-performing assets would be contained at 2%.
Commenting on the proposed stake sale of PNB Gilts, Mr Chakrabarty said that the stake sale could not take place as the bank has not found a suitable buyer. He said that investment bankers would continue with the search.
Addressing newspersons, the bank's chairman K.C. Chakrabarty said that the cut in lending rates would be revenue neutral and the bank expected net interest margins of 3.4% to 3.5%. As on December 19 the bank has recorded a 29% growth in deposits and 34% growth in advances as on December 19. Between September 12 and December 19 the bank has disbursed loans close to Rs 13,000cr taking its outstanding loan portfolio to Rs 1,37,000cr.
According to Mr Chakrabarty if there are any slippages on account of the slowdown they would emerge only after June `09. He added that while slippages were natural during a slowdown, he expected them to be within control. According to him the bank's gross non-performing assets were unlikely to exceed 4% while the net non-performing assets would be contained at 2%.
Commenting on the proposed stake sale of PNB Gilts, Mr Chakrabarty said that the stake sale could not take place as the bank has not found a suitable buyer. He said that investment bankers would continue with the search.
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