PNB Board ratifies PLR hike rate

Bhopal, Aug 12 (UNI) The Board of Directors of the Punjab National Bank (PNB) today ratified the bank's decision to hike its prime lending rate (PLR) by 0.25 per cent to 11.50 per cent.

Briefing newsmen after the board's meeting, PNB Chairman S C Gupta said the board members endorsed the PLR hike, as it was in the overall interest of all, including the shareholders and the bank.

He said the meeting was apprised of the Union Finance Minister's advice to all PSU banks on July 28, to get their rate hikes passed by their respective boards in the presence of the government nominee.

As the government had a majority stake in PNB, its board considered the Centre's guidelines and decided to approve the bank's earlier decision on the matter.

Besides PNB, some other PSU banks had decided to raise the PLR rate in view of the hike in the reverse repo rate announced by the RBI on July 25.

Mr Gupta said there was no move to rollback the revised home loan rates.

''The matter did not not figure at the board's meeting as it is an internal matter. Our home loan rates are still lower than other PSU banks,'' he noted.

Mr Gupta said PNB will open four international branches, one each at London, Canada, Hong Kong and Singapore by March 2007 subject to approval by the respective countries.

While formalities for the London and Hong Kong branches had been completed, papers relating to Canada and Singapore branches would be submitted in a month or so, he said.

At present, PNB had its presence only in Kabul, he added.

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