PNB to take soon decide on hiking interest rates

New Delhi, July 31 (UNI) Chairman and Managing Director of Punjab National Bank (PNB) S C Gupta today said the bank will soon take a decision on hiking interest rates on various segments, such as housing loans, to bring these in alignment with RBI's recent decision to hike repo rate and reverse repo rate by 25 basis points.

''The Bank has not yet taken a decision in this regard, but would do so soon,'' Mr Gupta said addressing a press conference here to anounce Q1 results.

There have been a series of interest rate hikes by the RBI in the recent past, the last one being on July 25 as a part of its first quarter review of credit policy.

Following the decision of the RBI to increase repo rate and reverse repo rate twice recently totalling 50 bps, a number of Banks hiked interest rates on various segments, such as home loans.

Mr Gupta gave the impression that the bank was adopting a wait and watch policy, but added that the effort would be to effect efficiency in the banking operations to minimise the interest burden increase on customers.

Mr Gupta said PNB had desisted from hiking interest rates till May 2006, notwithstanding the policy stance of the Central Bank and changes in the global interest rate scenario.

Mr Gupta noted that some banks which have been operating efficiently had not hiked interest rates.

UNI GS PK RAI1922