Interest rates likely to remain steady: PNB

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New Delhi, May 26 (UNI) Even as the State Bank of India (SBI) today raised the interest rates on domestic term deposits, the country's second largest lender Punjab National Bank (PNB) has decided not to follow suit.

PNB said interest rates are likely to remain stable even though the industry has witnessed a slow down in credit offtake.

On deposit rates, PNB Chairman K C Chakraborty said the Bank would take a view on the matter at its Asset Liability Committee meeting.

''I have to look into that (raising deposit rate)... our ALCO will meet and decide. However, interest rate appears stable,'' he said.

He added that the credit growth was unlikely to remain at levels of 24-25 per cent and 20 per cent growth is good enough.

SBI today increased the interest rates on domestic term deposits for more than two years by 25-50 basis points, effective from June 1, 2008.

Under the revised rates, interest rate on term deposit for two to three years will be increased to 8.75 per cent from present 8.50 per cent.

For three to five years, it will be increased to 8.85 per cent from 8.50 per cent, while for five to ten years, it will be nine per cent.


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