Interest hike continues; PNB also raises home loan rates

New Delhi, May 1 (UNI) After the State Bank of India, Oriental Bank of Commerce and a few others, the Punjab National Bank today hiked its interest rates by 50 basis points alongwith revising the rates on its Fixed Deposits by 25 to 50 basis points.

Following the trend of the hardening of interest regime, the ICICI and Punjab and Sind Bank (PSB) increased its interest rates on NRI deposits.

Interest rates for loans upto 5 years, above 5 and upto 10 years, above 10 and upto 20 years have been hiked by 50 basis points from 7.75 per cent to 8.25 per cent, 8 per cent to 8.5 per cent and 8.25 per cent to 8.75 per cent, respectively.

An increase of 50 basis points have also been made for loans above 20 years and upto 25 years to 9.5 per cent from an earlier rate of 9 per cent.

PNB also revised its Bench Mark Lending Rate to 11.25 per cent per annum from 10.75 per cent per annum, and has revised interest rates on FDs in the range of all maturities of 180 days.

The revised rates are applicable on accounts opened under Capital Gains Scheme and are effective from today.

PSB also hiked its interest rates on US dollar deposits to 5.33 per cent from 5.29 per cent for deposits ranging from 1 yearto less than 3 years.

Interest rates have been raised for deposits of 3 years to less than 4 years, 4 years to less than 5 years and 5 years to 5.35 per cent from 5.27 per cent, 5.39 per cent from 5.3 per cent and 5.43 per cent from 5.31 per cent respectively.

Rate of interest for pound deposits of 1 year to less than 2 years have been hiked from 4.78 per cent to 4.87 per cent.

A hike for deposits of 2 years to less than 3 years, 3 years to less than 4 years and 4 years to less than 5 years have been made from 4.83 to 4.98 per cent, 4.87 to 5.06 per cent and 4.86 to 5.09 per cent respectively.

For deposits of upto 5 years the interest rate has been revised to 5.10 per cent from anearlier rate of 4.85 per cent.

ICICI Bank has also announced a revision in its interest rates on Non Resident External (NRE) fixed deposits and Foreign Currency Non-Resident (FCNR) deposits.

Interest rates on 1 year NRE deposits have been increased to 6.33 per cent per annum from 6.30 per cent, while interest rates on 1 year FCNR deposits, denominated in US dollars have been increased to 5.33 per cent per annum.

Interest rates on 18 months and 2 year NRE deposits have been hiked to 6.34 per cent from 6.30 per cent. For 3 years, the new rate is 6.35 per cent.

Interest rates on GBP denominated and Euro denominated FCNR deposits have been increased by upto 25 bps and 23 bps respectively for various maturities.

The new rates will be effective from May 1, 2006.

SBI, on Saturday, had hiked home loan rates by as much as 50 basis points for the second time in two months to counter the rising cost of funds.

The Oriental Bank of Commerce (OBC) had also announced on increase in interest in this portfolio by 0.5 to 0.75 per cent relating to both floating and fixed rates.

UNI PV RA RN1820