PNB (Punjab National Bank) has further slashed the savings account interest rates for the 2nd time since December 2021. According to their website, the saving accounts with a balance less than Rs 10 lakh will get an interest rate of 2.75% per annum which was 2.8% earlier.
For a balance of more than Rs 10 lakh and below Rs 500 crore, the interest rate will be 2.8% which was 2.85% before. For a balance of more than Rs 500 crore, the interest rate will be 3.25%.
All the interest rates are applicable from February 3, 2022.
Will the interest rate increase soon?
A recent report by LiveMint stated that PNB’s MD and CEO SS Mallikarjuna Rao said that the interest rate will increase by 25 to 30 basis points in February. It will be equal to a 0.25% to 0.30% rise in the current interest rates.
Rao further said that the dues from Air India worth Rs 4,000 crore have to be recovered by the bank. He also said that the home loan interest rates offered by PNB are the lowest in India. PNB’s home loan interest rates vary from 6.5 to 7 per cent.
PNB recorded a tremendous increase of 123% in net profit in 2021. Their net profits rose from Rs 1,127 crore in the third quarter of FY 21-22. The income fell but the net income rose. Today morning, the PNB shares were trading in the green, they were trading at 3% higher at Rs 42.70 per equity share. The shares had touched Rs 38 per share on January 24, 2022. The share prices have been on a high since then.
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