PNB Not to Cut Retail Rates

Punjab National Bank (PNB)—India’s second-largest public-sector bank—said in a statement that it would not cut the retail lending rates further until the cost of funds came down.

KR Kamath, chairman and managing director, PNB said, “We have already cut our retail rates even before the RBI policy as we wanted to build up on our retail portfolio.” The bank’s current home loan rates stand at 10.75 per cent for loans up to Rs 75 lakh and 11 per cent for loans above 75 lakhs.

Few banks recently cut their retail rates including the country’s largest lender State Bank of India and Central Bank of India. SBI is charging an interest rate of 10.25 per cent for loans up to Rs 30 lakh and 10.4 per cent for loans above Rs 30 lakh while Central Bank of India is offering home loans below Rs 30 lakh at the base rate which stands at 10.5 per cent.