Punjab National Bank on Thursday said it would cut overall interest rates again if inflation eases further.
Ruling out the possibility of matching home loan rates offered by the country's largest lender SBI, Punjab National Bank on Thursday said it would cut overall interest rates again if inflation eases further.
"If inflation comes down further, we will cut rates again," PNB chairman and managing director K C Chakrabarty said on the sidelines of a function announcing implementation of core banking solution (CBS) across its network.
The country's second largest public sector lender last reduced its rates from February 1 when it slashed benchmark lending rate by 50 basis points to 11.50 per cent. At the same time, it also reduced rates on home, car, education as well as personal loans by up to 50 basis points.
Inflation for the week ended January 24 eased to nearly one year low of 5.07 per cent.
Terming its home loan rate competitive, Chakrabarty said, "Though SBI is our big brother we have no intention to match eight per cent home loan rate scheme."
SBI reduced its housing loan rate to eight per cent for the new borrowers for a period of one year irrespective of the loan amount.
The new scheme of eight per cent interest rate will be offered for loans availed between February 2 and April 30, 2009.
After the freeze period, SBI would reset the rate as originally applicable under respective schemes.
PNB is offering floating rate housing loans in between nine per cent and 10.25 per cent depending upon tenors and amounts.
Talking about implementation of CBS, Chakrabarty said, the project has been completed four months ahead of schedule.
All its 4,604 branches and 249 extension counters are running through Finacle Universal Banking solution since November 2008.
The challenges of the financial sector can be met with the total connectivity and the centralisation of the banking operation, he said, adding it not only ensures standardisation of products, but also enables quick launch of the new and innovative financial products ensuring sufficient lead time to market it.
Chakrabarty said the bank is planning to set up a wholly owned subsidiary in line with its UK operation in Canada.
The subsidiary is likely to come up by the end of this year, he said, adding only last month PNB opened a representative office in Oslo, Norway.
PNB had also expanded UK subsidiary by opening a branch in Leicester. The subsidiary already had two branches at Gresham Street and Southall.
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