PNB may hike interest rates; to hire 12k people: Kamath

PNB may hike interest rates: Kamath

Punjab National Bank CMD K R Kamath says the bank might raise interest rates in view of the recent hike in key rates by the RBI.

  • Shimla,  June 21, 2011  
  • |  
  • UPDATED   08:19 IST

Punjab National Bank CMD K R Kamath on Monday said the bank might raise interest rates in view of the recent hike in key rates by the Reserve bank of India (RBI).

However, he added that the hike would depend on liquidity and overall market situation.

Meanwhile, Kamath said, the bank plans to recruit 12,000 people this year.

He said PNB was launching a special PNB Rakshak scheme for Defence personnel, including BSP, CRPF, CISF and other paramilitary forces, for providing various facilities like overdraft, Sweep in and out in saving fund accounts and concessions in housing, vehicles and personal loans.

Read how you can deal with rising interest rates

An MoU has already been signed by the Bank with the Ministry of Defence for this scheme.

Kamath, who met Chief minister P K Dhumal, said the Bank would develop an agriculture farm to train farmers in the latest advancements in the farm sector and requested Dhumal to provide land.

He said the chief minister has assured him that land would be made available for the training farm.

On PNB's activities in the state, Kamath said the bank had record turnover of Rs 12,400 crore during last fiscal, registering 35 per cent growth over the previous year.

He said the credit-deposit ratio of the bank in the state was 32 per cent, but taking into account the loans advanced to hydro-power projects under execution in the state from head office in Delhi, the ratio comes to over 70 per cent.

PNB has released loans worth Rs 35,000 crore to hydro-power projects in Himachal Pradesh.