Punjab National Bank is a leading public-sector bank offering fixed deposit products to customers at varying tenors and competitive rates. Interest rates on fixed deposits, however, are prone to changes in line with market rates. This can make it difficult for potential customers to ascertain maturity amounts and plan investments. To alleviate this, the above table captures all changes made to the banks FD rates. This not only lets customers track holdings but also make real-time comparisons.
The updated list of Punjab National Bank FD Rates 2017, for General and Senior Citizen less Than Rs.1 Cr. W.E.F. 03.05.2017 is listed below:
|Tenure||For General Rate of Interest (% p.a.)||For Senior Citizen rate of Interest (% p.a.)|
|7 to 14 days||4.25||4.75|
|15 to 29days||4.25||4.75|
|30 to 45 days||4.75||5.25|
|46 to 90 days||6||6.5|
|91 to 179 days||6.25||6.75|
|180 days to 270 Days||6.5||7|
|271 days to less than 1 year||6.5||7|
|above 1 year & upto 2 years||6.8||7.3|
|above 2 year & upto 5 years||6.8||7.3|
|above 5 years & upto 10 years||6.7||7.2|
The interest rate stands at 4.25% on a 29-day deposit. This is a reasonable return for those with near-term liquidity requirements. For schemes with tenures of 46 and 90 days, the rate stands at 6% which is enhanced by 0.25% for a tenor of 91 to 179 days (at 6.25%) and by 0.25% for a tenor of 180 days to 270 Days at 6.50%. For deposit periods of 180 days, rates are same as 9 months i.e. 6.50%.
Interest rates on PNB’s fixed deposits for holdings of 1 year and above (up to 5 years) are varying from 6.70% to 6.9%. Deposits held for 1 Year gives the highest interest rate at 6.9% which drops for the deposit of 1 year to 2 years gives interest rate of 6.80% while deposits held for more than 2 to 5 years will see a drop in rates to .90%. For tenures above 5 years, the rate holds steady at 6.7%.
An increment of 0.5% is offered on all existing FD rates, across tenors, for senior citizens.
PNBs FD rates are comparable to its peers making them attractive investment options for safe and assured returns. Deposit rate changes are an outcome of RBI cuts in repo rates which has led PNB and many other banks to reduce their base rates.
The updated list of PNB Senior Citizen FD Rates, per specific tenures, is mentioned above.
Punjab National Bank (PNB) has slashed the interest rates on various schemes of fixed deposits by about 0.3 %. According to the PNB statement, the newly announced rates will be effective from October 5 onwards. Interest rate reductions for domestic term deposits will be applicable only on certain maturities and it will vary from 0.05 to 0.3 %. A week ago, PNB had also revised the Marginal Cost of Funds based Lending Rates (MCLR) across all maturities by lowering it to 0.5 %. These revisions come a day after RBI announced its bi-monthly monetary policy review.
12th October 2016
Punjab National Bank has slashed its Fixed Deposit interest rates by up to 0.25% for certain tenors.
The bank has cut interest rates for retail term deposits with a maturity of more than 1 year by 0.05 to 0.25%, with the new rates effective from the 1st of July, 2016.
The rate cut could be a response to the bank’s recent earnings loss, as it suffered losses pegged at Rs. 5,367 crore for the quarter ending March 2016.
The Non-Performing Assets (NPA) provision rose to Rs. 11,380 crore for the last quarter of 2015, a jump from Rs. 3,281 for the same period in the previous year.
This resulted in the bank’s NPA rising to 12.9% for the period ending March 2016, up from 6.55% for the previous year.
4th July 2016
Acting on the directive of the Reserve Bank of India, Punjab National Bank has lopped the interest rates of its products owing to the repo rate reduction. Its deductions, though fractional, have been consistent regarding its interest rates. Though savings accounts have not been affected in a major way, the traditional investment tool of fixed deposits has witnessed interest rate slashing.
The third month of the last quarter of 2015, December, has seen changes in the interest rate for fixed deposits with Punjab National Bank. The interest rate applicable for deposit tenures 1 year up to 2 years for deposits less than Rs 1 crore are 7.50% (regular deposit) and 8% (senior citizens deposit) respectively. For NRE deposits less than Rs 1 crore, with the tenures 1 year up to 2 years the rate of interest is 7.50%. NRE term deposits of Rs 1 crore to Rs 10 crore have interest rate at 7%.
In case of the term deposit less than Rs 1 crore for tenure above 2 years and up to 5 years, the interest rates are 7.25% (regular deposits) and 7.75% (senior citizens deposits). NRE deposits of less than Rs 1 crore, with tenure above 2 years and up to 5 years have interest rates at 7.25%. 6.75% interest rate is applicable to NRE term deposits of Rs 1 crore to Rs 110 crore.
16th December, 2015
A growing nationalised bank, Punjab National Bank has conformed to the directive of the Reserve Bank of India and has reduced the interest rates charged on many of its credit instruments. Along with that, has also come the reduction of interest rates offered on deposits. While savings bank accounts haven’t been as seriously affected, fixed deposits have seen the sticky end of the situation repeatedly.
As of November 2015, the lowest interest rate offered by Punjab National Bank is at 4.25% per annum for deposit periods ranging from 7 days to 29 days. The interest rate increases by 0.5% for the next time slab of 30 to 45 days. For deposits of durations 46 to 90 days, an interest rate of 6.25% per annum is applicable. Fractional increases in the rates allow for subsequent interest rates of 6.5% and 7.0% per annum. The maximum interest rate on offer is capped at 7.75% per annum for periods of deposit ranging from 1 year up to 2 years. All interest rates are increased by 0.5% in case of senior citizens.
3rd November, 2015
After the repo rate cut of the Reserve Bank of India by almost 50 basis points, ICICI Bank’s lending rate has been cut to 9.35% this rate will be effective 5th October 2015. All loans will be cheaper by at least 0.35%. Base rate is the benchmark to which all lending rates are linked. Punjab National Bank as well have reduced their interest rate by 0.25% on fixed deposits of various maturities.
5th October 2015
Punjab National Bank reduced the interest rates on select maturities by up to 0.50 percent. Domestic term deposits interest rates have been reduced between 0.10 percent and 0.50 percent on select maturities with effect from 10th August, 2015.
The bank previously cut rates on fixed deposits in June, 2015. The reduction has come after a day the Reserve Bank of India didn’t change the benchmark in the monetary policy review.
The Reserve Bank of India has kept the repo rate/ the short-term lending rate at 7.25 percent. Other policy tools like cash reserve ratio and statutory liquid ratio is not changed and stands at 4 percent and 21.5 percent respectively.
6th August 2015
The Punjab National bank (PNB) has announced rate cut on fixed deposits of select maturities. Rates have been cut by up to 0.25% or 25 basis points on select products. The new rates will come into effect by 26th June, according to a statement from the bank.
The affected products include term deposits of 180 days maturity, 1-2 years maturity and 2-5 years maturity. 180 days deposits will now attract an interest rate of 7.50% from 7.75% previously, while 1-2 years maturity deposits will see interest rate reduced by 0.15%. The 2-5 years tenure term deposits will attract interest at 8%, down from 8.25% previously.
These changes follow the recent rate cut by the Reserve bank of India (RBI), which reduced repo rate by 0.25% from 7.5% to 7.25%. The apex bank has kept the CRR or cash reserve requirement and Statutory Liquidity Ratio (SLR) unchanged at 4% and 21.5% respectively.
The last rate cut by PNB was in April when it reduced deposit rates by 0.25%. The bank reduced its base lending rate in May by 0.25% as per market sentiments. The base rate was reduced from 10.25% to 10% following the announcement in May.
26th June 2015
In the wake of the latest cuts in the repo rate, announced by the RBI, Punjab National bank has also announced that it will cut the interest rates on it fixed deposits by the 8th of June, 2015. The cut will be a lowering of the rates by as much as 0.25%. After Axis Bank, PNB is the second bank to announce a cut in their FD interest rates. The cut however is not likely to affect all the deposits durations but just a few specific deposit periods. There is no doubt that with Axis Bank and PNB cutting interest rates, other banks will soon follow suit.
05th June 2015
The Punjab National Bank (PNB) has announced a rate cut of 25 basis points (0.25%) on fixed deposits within 1 year to 5 years maturity tenure. The deposit rate has subsequently come down to 8.50% from 8.75% in 1-5 years slab. The new rate will become effective from 23rd April ’15.
This move comes days after banks like the State Bank of India, Axis Bank, HDFC Bank etc. announced their own rate cuts in both deposit and lending segments. PNB is also expected to follow suit and reduce lending rates in the coming days.
The lending rate cuts by SBI, HDFC and Axis Bank came after a tough talk by the RBI Governor Raghuram Rajan. Banks have been reluctant to pass the rate cuts extended by the RBI to their customers, citing increasing cost of funds as a major impediment in implementing lower rates. The RBI has rubbished these claims saying that banks are experiencing lower cost of funds since the repo rate cuts were announced by the apex bank this year.
22nd April 2015
While most banks are responding to the excess liquidity of funds in the market with cuts in their prevalent term interest rates, state owned Punjab National Bank (PNB) is swimming against the tide. Starting from January 8, the bank has announced a hike of 0.5% on various maturities that amount to less than Rs.1 crore. For tenures between 7-14 days, the rate is hiked from the existing 4% to 4.50%. For tenures between 30-45 days and 180-270 days, the updated interest rates amount to 5% and 7.75%, a boost of 0.5% and 0.25% respectively. However, not all maturities will witness an upswing. Tenures from 271 days to less than 1 year will now command a rate of 7.75%, a cut of 0.25%, while a similar reduction applies to fixed deposits ranging from 1-3 years and 5-10 years. Also, changes were announced for maturities that amount from Rs.1 crore to Rs.10 crore. Term deposits with tenures of 91-179 days and 180-270 days will now account for rates of 7.50% and 7.75% respectively, a cut of 0.5% in each case. Finally, term deposits that range from 271 days to 1 year will now account for 7.75%.
8th January 2015