INSUBCONTINENT EXCLUSIVE:
has started tying up with non-banking financial companies (NBFCs) for co-originating loans amounting to Rs 4,000 crore since the last two
months and though the lender has not decided if it will link the deposit rates with the RBI repo rates, its retail loan rates will be based
on repo rates from October 1, its Managing Director and CEO Sunil Mehta said on Monday."We have funded four such portfoilos aggregating Rs
4,000 crore in the past two months, and the bank is in the process of identifying more such portfolios," Mr Mehta told IANS.The stress on
PNB will link its deposits and lendings rates to RBI's repo rate as external benchmark linking from October 1, Mr Mehta said: "We have not
linked them to the repo rates because sometimes it can create more volatility
We will deliberate issues and take a call."Acting upon their commitment to review lending rates in the context of policy rate cuts, all PSBs
effected weighted average rate cuts of 27 basis points till August and another 10 effected additional rate cuts ranging from 15 to 5 basis
points this month.Further, to enable automatic transmission of externally benchmarked rates, 15 PSBs have introduced repo-rate-linked loan
products for housing and vehicles, consumer credit, cash credit limits and mortgage-based loans
Already, over 1.08 lakh repo-linked proposals, amounting to over Rs 40,000 crore, have been sanctioned
sector stood at 10.1 per cent on a year-on-year basis.On the merger of PNB with Oriental Bank of Commerce and United Bank of India, with PNB
as the anchor bank, Mr Mehta said: "Post the merger from April 1 next year, the bank's stregth in terms of assets is going to be rising
We have prepared the consolidated balancesheet of the three banks also
All these things will enable a stronger balancesheet
Globally, as we know there are large-sized banks
In India, we don't have a large size bank listed even in the global first 100 banks
So India needs large-sized banks and this amalgmation is a step in that direction."Emerging from the Nirav Modi fraud shadow, PNB posted a
net profit of Rs 1,019 crore for the June quarter against a loss of Rs 940 crore registered in the corresponding quarter of the previous
fiscal.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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