PNB’s hike in home loan
rates
January 1, 2007:
Following the hike in prime lending
rate (PLR) by country's largest lender
State Bank of India, Punjab National
Bank revised its lending rates from
11.50 per cent per annum to 11.75 per
cent per annum.
The increased rate
will be applicable from January 1, 2007.
The bank sources said that the latest
PLR hike would not have any implications
on home loan interest rates as these
rates are not linked to the benchmark
PLR.
The bank had recently
increased the interest rate from 11.25
per cent to 11.50 per cent in August
this year.
The hike in lending
rates has been due to the recent rise
in deposit rates and tighter liquidity
conditions, says bank sources.
A PNB official said
on Friday that although the bank had
indicated that it had no immediate plans
to hike PLR, the turn of events in the
last few days and the need to protect
shareholders' interest had prompted
it to go in for the PLR hike.
Source: IBN Live
