PNB to raise interest rates

Punjab National Bank will increase interest rates in between 25 to 50 basis points after July.

Punjab National Bank said on Thursdat that it will increase interest rates in between 25 to 50 basis points after July.

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"We will not remain soft. 25 to 50 basis point increase in interst rates should not cause anxiety in the market. However, interest rates would remain stable at current level upto June-July," PNB CMD SC Gupta told reporters.

The bank is also planning to raise Rs 1,000 crore by availing the option of TIER II during first quarter of the current fiscal. The bank also has the option to raise the capital in instalments.

The capital is being raised to Basel II norms which will be effective from March 2007.