PNB cuts interest rates
By New Delhi: | 08 Oct 2003
New Delhi: Punjab National Bank has revised interest rates under its Flexible Rate Deposit Scheme with effect from 1 October.
The interest rate for deposits of three years to less than five years has been revised from 5.92 per cent to 5.16 per cent per annum.
The rate for five years to less than seven years has been revised from 6.17 per cent to 5.41 per cent and the rate for seven years to less than 10 years has been revised from 6.42 per cent to 5.66 per cent.
The Flexible Rate Deposit scheme operates on a market determined interest rate linked to a government security paper called the Benchmark rate.
The rate is calculated on the basis of average yield to maturity for the last six months for 10 years government paper.
The objective of the scheme is to hedge against the interest rate volatility by offering deposits at flexible rates. The minimum deposit under the scheme is Rs 1 lakh and in multiples of Rs 10,000 thereafter.
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