PNB Rate Hike:PNB Revises Interest Rates On Fixed Deposits Again; Second Hike In 10 Days

Punjab National Bank (PNB) has yet again changed fixed deposit (FD) interest rates for amounts below Rs 2 crore, making it the second such hike in a span of just 10 days. PNB had earlier revised rates with effect from January 1 and has now implemented additional changes, effective from January 8.

In its latest adjustment, the public sector lender increased interest rates by a 80 basis points (bps) on a single tenure.

On deposits maturing in 300 days, the bank has hiked rates from 6.25% to 7.05% for general citizens.
On January 1, PNB had hiked rates by up to 45 bps on certain tenures while simultaneously reducing rates on others.

Following the recent revision, PNB now provides general citizens interest rates ranging from 3.5% to 7.25% on deposits maturing in 7 days to ten years.

Earlier this month, the bank increased rates on some tenures by as much as 50 basis points (bps).

The bank offers a 3.50% interest rate on deposits maturing in 7 to 45 days, and a 4.50% interest rate on deposits maturing in 46 to 60 days. PNB recently increased interest rates on fixed deposits with terms ranging from 180 to 270 days by 50 basis points, or 6.00% from 5.50%, and increased rates on FDs with a duration of 271 days to 299 Days to 6.25%.

On deposits maturing in 400 Days the bank offers interest rate of 7.25% and on those maturing in 401 Days to 443 days, PNB offers an interest rate of 6.80%. Punjab National Bank offers an interest rate of 6.80% on deposits with a 445-day to 2-year duration but has reduced its FD rates on 444-day terms by 45 basis points, from 7.25% to 6.8%. The interest rate on deposits maturing after two years and up to three years stand at 7.00%.

Since May 2022, the Reserve Bank of India has increased interest rates by 250 basis points. The central bank has kept the repo rate unchanged at 6.5% for the fifth consecutive time in its last policy meeting held in December 2023.