PNB
cuts interest rates
Our
Banking Bureau
8 October 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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