PNB not to hike interest/PLR rates in near future

New Delhi, Oct 12: Ahead of the RBI's quarterly review of the credit policy, Punjab National bank (PNB), the second largest public sector bank in the country after State Bank of India, today said it will not further hike its interest and Prime Lending Rates (PLR) in the coming months.

''We have enougn cushion and are not considering a further hike in the interest and PLR rates. Infact, we have brought down the consumer and housing interest rates by 25 basis points for the coming festival season,'' PNB CMD S C Gupta told reporters after inaugurating the bank's eighth Large Corporate Branch (LCB) here.

The bank revised its PLR in May and then in August.

PNB, which reported a net profit of Rs 368 crore in the first quarter, is expecting an improvement in the second quarter results, which it will announce on October 30.

''Q2 will be much better than the last quarter as there is no depreciation, and the interest rates have softened, unlike the first quarter. We are expecting a treasury gain in this quarter, with just a little write-back,'' the CMD added.

The bank's credit growth for the period March-September stood at Rs 8,000 crore, and it is expecting to grow at a rate of 20 per cent, both in depositories and advances. Its year-on-year growth upto September has been at 28 per cent.

On consolidation of bank's, Mr Gupta said, ''The consolidation of the banking industry is inevitable and unavoidable. However, we have to wait and watch for another six months to a year, when there is going to be a lot of excitement on that front,'' he added.

He said he was open to the inorganic mode of growth and was not averse to acquisitions, but was waiting for the right opportunity.

''Right now we haven't got the right kind of opportunity. However, we are looking at the right time and synergy,'' he said.

On the Rate of Interest policy, he said, ''There should not be any change in that with the oil prices down and inflation rate well under the five per cent mark. However, we will have to wait and see what the Governor says on October 31, when the policy will be reviewed by the Reserve Bank of India.'' The bank increased its Tier II capital by Rs 1,000 crore till March this year, besides another Rs 500 crore in this second quarter.

The bank today opened its eighth Large Corporate Branch (LCB) in Delhi, after one each in Mumbai, Ahmedabad, Bangalore, Kolkata, Chennai and Ludhiana and Delhi.

It has achieved a business of more than Rs 2,13,000 crore in the first half of this fiscal, and is optimistic about going above its target of Rs 2,25 000 crore for the fiscal.

The bank's deposits were Rs 1,29,000 crore and advances stood at Rs 84,385 crore till September this year.

UNI