PNB delayes plan to hike deposit rates

Punjab National Bank (PNB) has delayed its plan to hike deposit rates. The rates will be reviewed in 15 to 30 days, said its chairman and managing director K C Chakrabarty.

He also said that PNB was not in a rush to raise deposit rates and his bank will wait to see whether other banks will cut deposit rates, as asked by the finance minister, P Chidambaram. Despite tight liquidity, most banks including State Bank of India, ICICI Bank, Canara Bank, Bank of India, Bank of Baroda and Dena Bank have cut deposit rates.

However, state-run bank PNB had announced in July 2007 that it may hike its deposit rates because they were below the market rates. Reportedly, PNB was to hike deposit rates from 7.5 per cent to 8 per cent and from 8 per cent to 8.25 per cent, but the rates were to remain below 9 per cent.