PNB hikes PLR by 50 bps; deposit rates up 25-50 bps

New Delhi, Jun 27 (UNI) Following in the footsteps of three important state-run banks, Punjab National Bank today raised its Prime Lending Rate (PLR) by 50 bps to 13 per cent.

The PNB Board, which met here this afternoon, raised deposit rates between 25 bps to 50 bps.

The loan and deposit rate hike is effective from July 1, 2008.

The increase by the government-run banks comes in the wake of the Reserve Bank of India (RBI) putting a leash on money supply to put down the fire of inflation.

In a sudden move, the Central Bank on Tuesday night had undertook a double whammy -- hiking repo rate by 50 bps and increasing Cash Reserve Ratio by 0.5 per cent.

The country's largest bank -- State Bank of India -- increased its PLR by 50 bps, followed by the Union Bank of India hiking it by the same quantum.

Indian Bank also increased this morning its PLR by 50 bps.

With the three big banks -- SBI, UBI and PNB -- and a mid-sized bank -- Indian Bank -- having increased their PLR by 50 bps, it is clear that other banks will follow suit.

UNI SR SBA PM1930