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PNB CEO: No Rate Hikes, Full 125 Bps Repo Cut Benefit Passed to Customers

Punjab National Bank's CEO Ashok Chandra has confirmed there are no current increases in interest rates and that the full benefit of past repo rate cuts has been transferred to customers. He expressed strong confidence in the resilience of both the Indian economy and the banking sector. While noting potential sectoral impacts if West Asia tensions persist, he assured that support measures are ready for vulnerable areas like MSMEs. Chandra made these remarks during PNB's 132nd Foundation Day celebrations, highlighting the bank's growth and future role.

Key Points: PNB CEO Says No Interest Rate Hike, Confident in Economy

  • No current interest rate hikes
  • Full 125 bps repo cut passed to customers
  • Economy and banking sector deemed strong
  • Monitoring West Asia tensions' impact
  • Ready to support affected MSME/retail sectors
2 min read

"No increase in interest rates, 125 bps repo cut benefit passed to customers": PNB CEO

PNB CEO Ashok Chandra states no increase in interest rates, full repo cut benefit passed on, and expresses confidence in India's resilient economy.

"Right now, there is no increase in the interest rate... the 125 basis points that were cut in the repo rate, we have already passed on all those rates to the customers. - Ashok Chandra"

New Delhi Apri, l 12

Punjab National Bank Managing Director and CEO Ashok Chandra on Sunday said there is no increase in interest rates in the system at present and that the bank has already passed on the benefit of earlier repo rate cuts to customers.

"Right now, there is no increase in the interest rate... the 125 basis points that were cut in the repo rate, we have already passed on all those rates to the customers. And we are not seeing any increase in the rate in the entire system," Chandra told ANI.

He added that both the economy and the banking sector remain strong. "The economy is very strong. The banking sector is very strong," he said.

Speaking about the potential impact of the ongoing tensions in West Asia, Chandra said, "If this war continues, then definitely some sectors will be affected. And for that, the Indian government and the Reserve Bank of India are thinking a lot about it."

He added that support measures would be extended if required, especially for vulnerable sectors.

"Whenever there is a need, then definitely we are all ready... through rehabilitation, and through any such scheme, where the MSME sector or the retail sector, wherever there is an effect, I think we will worry about it. And we will provide all the help we can through the banking system," Chandra said.

Drawing a parallel with the COVID-19 period, he highlighted India's resilience in handling crises. "Even during the time of Corona... the Indian government and the Reserve Bank of India brought very strong measures... if a country was made strong economically, then it was India," he said.

Expressing confidence in the country's ability to manage future challenges, he said, "India's economy, India's banking sector is very resilient, very strong... I don't think that in the coming situations, there will be any particular problem."

Chandra was speaking on the sidelines of PNB's 132nd Foundation Day celebrations, where he also highlighted the bank's legacy and growth.

"Our bank is the second largest public sector bank in the country... and in the coming years... Punjab National Bank is going to play a very important role," he said, adding that the institution has grown significantly since its inception.

- ANI

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Reader Comments

R
Rohit P
Strong words from the CEO. But I have a respectful criticism - while they say benefits are passed on, the actual reduction in EMI for my home loan was minimal compared to the repo rate cuts. Banks need to be more transparent about the transmission mechanism.
A
Aman W
The confidence is good, but we must remain cautious. West Asia tensions can spike oil prices, which hits our economy hard. RBI and govt need to have solid backup plans ready. Jai Hind 🇮🇳
S
Sarah B
As an NRI with investments in India, this stability in the banking sector is very encouraging. PNB's long legacy adds to the trust. Hope the resilience shown during COVID continues.
V
Vikram M
Public sector banks like PNB are the backbone of our financial system. Their commitment to supporting vulnerable sectors during crises is what sets them apart. Proud of our strong banking framework!
K
Kriti O
No increase in interest rates is a relief for common people like us. With education and housing loans, every basis point matters. Hope this positive trend continues despite global headwinds.

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