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Tag: Punjab National Bank

  • How to take a no-cost EMI mortgage this festive season

    Festive Season No-Cost EMI Loan Guide: As the festive season approaches, manufacturers gear as much as appeal to customers with the most effective buying provides. One generally out there supply in the course of the festive season is no-cost EMI. Like with some other compensation possibility, there are some issues you should learn about no-cost EMIs earlier than availing of them this festive season.

    What is no-cost EMI?

    No-cost EMI, or zero curiosity EMI, is a compensation scheme that allows you to break up a purchase order’s price into interest-free installments for tenures as much as 12 months. This scheme is beneficial for high-value purchases the place it might not at all times be attainable to pay the complete worth upfront. With it, it can save you on further curiosity whereas ticking issues off your festive bucket listing with out upsetting your price range.

    Let’s perceive how no-cost EMIs work with an instance. You plan to buy a washer price Rs 24,000 however don’t need to pay its whole price upfront. A 12-month no-cost EMI supply will let you purchase this washer at a month-to-month EMI of Rs 2,000, which is way extra inexpensive in comparison with the upfront price.

    Is no-cost EMI actually cost-free?

    One of a very powerful options of a no-cost EMI scheme is that it doesn’t cost curiosity on EMI installments. The curiosity, on this case, isn’t waived by the service provider however as an alternative provided as a reduction. The annualised rate of interest remains to be charged by the lender and borne by the service provider. However, another prices and situations are concerned in a no-cost EMI transaction.

    Merchants could generally supply a reduction when you make a lump-sum upfront fee in your buy. If you avail of a no-cost EMI supply, you could have to forego such reductions. In some situations, whereas the service provider could waive off the curiosity as a reduction, they might nonetheless cost a processing charge that’s 2-3 per cent of the acquisition worth. A GST of 18 per cent may even apply to this transaction.

    For occasion, you need to purchase a smartphone that prices Rs 20,000. The service provider promoting this cellphone provides a ten per cent low cost on upfront fee, successfully decreasing the value to Rs 18,000. However, by buying the smartphone on no-cost EMI, you’ll have to forego the ten per cent low cost and pay the precise price of Rs 20,000 in EMIs, together with 18 per cent GST on the curiosity to the financial institution.

    Should you go for a no-cost EMI?

    No-cost EMIs are a go-to possibility for festive buying. So, how do you resolve whether or not or to not go for it? There are two issues to contemplate in such a scenario – the value of the product and your monetary scenario.

    If you may afford to purchase a product upfront with out it denting your funds, go for it. You stand to achieve additional if the service provider provides a further low cost on upfront funds. Moreover, when you’re already in debt, having one other mortgage could pressure your funds.

    On the opposite hand, when you can’t afford to make an upfront fee for the specified product, no-cost EMI can be a great possibility. Though you could have to forego a reduction when selecting this selection, this selection might be far much less disturbing in your price range.

    The pleasure of the festive season can generally check our resolve to stay to a price range. While a no-cost EMI could assist you do that, it’s critical to train due diligence earlier than choosing one. Ensure that you simply pay them on time, and skim the scheme phrases earlier than availing of it.

    The creator is the CEO of BankBazaar.com. The views expressed are that of the creator.

  • Punjab National Bank (PNB) prospects want to do that by month-end or else…

    The Punjab National Bank (PNB) reminded its prospects to replace their Know Your Customer (KYC) particulars by August 31 so as to maintain their account energetic. Only these PNB prospects must replace their KYC whose accounts have change into due for the method as of 31 March 2022. The financial institution warned prospects that “non updation might result in restriction of operations in your account.”

    “Important announcement regarding #KYC, please note!,” the general public sector lender tweeted.

    “As per RBI tips, KYC updation for all prospects is necessary. If your account has change into due for KYC updation as of 31.03.2022, you’re requested to contact your base department to get your KYC up to date earlier than 31.08.2022,” learn the notification posted by PNB on Twitter.

    How PNB prospects can get their KYC achieved

    When requested by a buyer how one would know if the KYC was pending, the financial institution promptly replied, “Dear buyer, thanks for writing to us. We request you to please join with our buyer care service at 1800 180 2222/ 1800 103 2222 (toll-free)/ 0120-2490000 (tolled quantity) for extra data on this regard. Thank you.”

    Dear buyer, thanks for writing to us. We request you to please join with our buyer care service at 1800 180 2222/ 1800 103 2222 (toll-free)/ 0120-2490000 (tolled quantity) for extra data on this regard. Thank you.

    — Punjab National Bank (@pnbindia) August 18, 2022

    Customers must submit a duly crammed and signed prescribed format if there isn’t any change within the KYC data offered by them to the financial institution. In case of any change, the client has to go to the department to get the identical up to date.

    What is KYC?

    KYC stands for Know Your Customer. The means of KYC helps the financial institution know in regards to the buyer’s identification, deal with, and monetary historical past and to maintain monitor of the cash that’s transacted or not for unlawful functions.

    PNB goals to get well ₹32,000 crore from unhealthy loans

    PNB’s Managing Director A Okay Goel stated the lender is aiming about ₹32,000 crore-worth recoveries from the decision of unhealthy loans within the present fiscal. The restoration in every quarter could be greater than the slippage, he stated, including that the financial institution’s whole restoration throughout the first quarter was ₹7,057 crore. The slippages have been at ₹6,468 crore throughout the identical interval.

    “We expects to recover ₹8,000 crore every quarter and would ensure that its recoveries are higher than fresh slippages,” he stated, PTI reported.

     

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  • FD Interest Rates 2022: FD rate of interest rising – do you have to select long-term or short-term FD?

    Fixed Deposit Interest Rates 2022 Updates: Fixed Deposits (FDs) are one of many most secure saving choices that assure constant returns irrespective of monetary market situations. Although rates of interest have dropped in recent times, the continuing inflationary developments level to a big rise in deposit charges quickly. Expectations are that the speed hike cycle will proceed and the repo fee could also be hiked by one other 75 to 100 bps. This will take FD deposit charges upwards of 6 per cent and shortly nudge 7 per cent for longer tenors. Once this occurs, FDs will once more be a pretty financial savings possibility whereas uncertainty prevails within the monetary markets. The assurance of fastened returns is engaging.

    How To Look At Fixed Deposits Now?

    Fixed deposits might be possibility if you’re a conservative investor and want cash within the quick to medium time period. You can use FDs to park your emergency corpus for wants coming within the foreseen future, say in 2-3 years. Given the uncertainty and volatility within the fairness market on the again of macroeconomic elements and geopolitical tensions, fastened deposits make sure the utmost security of your funds.

    Senior residents typically have the least danger urge for food and park their funds in financial institution deposits and equally safe securities. Since they’re eligible for greater rates of interest, anyplace between 0.25 per cent and 0.5 per cent greater than a basic citizen, a hard and fast deposit is a dependable possibility to avoid wasting and get assured returns. However, fastened deposit returns are nonetheless unattractive because the precise returns put up taxation vis-a-vis inflation are nonetheless damaging.

    In the present state of affairs, when the charges are going up, however the true returns are nonetheless damaging on account of inflation and taxation, it’s essential to take into account the tenor of fastened deposits. You can both select a short-term or long-term fastened deposit. Let us perceive this higher:

    Interest Rates On Long-term And Short-Term FDs

    The longer the funding horizon, the upper the rate of interest in fastened deposits. The tenor of the fastened deposits ranges from a minimal of seven days to 10 years. The short-term fastened deposit has a tenor of seven days to 12 months, whereas deposits locked in for 2 years or extra are thought-about long-term deposits. However, when it comes to curiosity, traders earn as little as 2.5 per cent curiosity to a most of 5 per cent in short-term deposits, whereas long-term fastened deposits can at the moment fetch you as excessive as 6.5 per cent. As compounding kicks in, your yield improves in the long run. This shouldn’t be the case with short-term FDs. Thus, in a short-term FD, you’ll get absolute easy curiosity, whereas long-term FDs will allow you to benefit from compounding.

    Short-Term FDs

    Short-term FDs include a shorter lock-in interval. Investors who need their funds’ security and want cash in 12 months ought to select short-term FDs. Since the untimely withdrawal of funds from FDs attracts a penalty of 0.5 per cent to 1 per cent, a short-term tenor is appropriate for such traders. Additionally, short-term FDs assist traders who’ve redeemed equity-oriented devices whose monetary objectives are close to. A brief-term FD shall be probably the greatest funding avenues to avoid wasting their funds as there are not any dangers and liquidity is excessive. The fee of return for brief tenors could not beat inflation put up taxation, however the quantum of funds is not going to see any erosion, and traders can use the cash for his or her future wants. It will assist when you remember that curiosity earned from FDs is taxable, and the tax fee is determined by the investor’s revenue tax slab he falls in.

    Long-Term FDs

    Fairly conservative traders who don’t want funds quickly and those that consider equity-related investments could not carry out for the medium time period, say 2-5 years, could take into account choosing long-term FDs. Not solely will they get a better rate of interest, however compounding will assist them get higher worth on the finish of the tenor. However, do remember that fastened deposits might not be an appropriate product if the investor’s horizon is longer than 5 years as inflation and taxation could significantly dwarf the returns. Senior residents may take into account going for the utmost tenor accessible in fastened deposits.

    Finally

    An investor must make a sound resolution whereas investing in fastened deposits, particularly when the rate of interest cycle is an uptrend. Since FD charges stand to alter if RBI will increase the repo additional, chances are you’ll stand to lose when you lock your corpus in a long-term FD in a single go.

    You could take into account a staggered means of investing in FDs, understanding that the repo fee may even see one other hike of 75 to 100 bps. When the following hike occurs, long-term traders in FD could add one other FD to their portfolio whereas locking it at a better rate of interest. This will assist in reaching the very best returns by means of FDs.

    Basis your monetary objectives and liquidity wants, chances are you’ll unfold your FDs into long-term and short-term FDs.

    The writer is the CEO of BankBazaar.com. Views expressed are that of the writer.

  • ‘Impact on efficiency, staff and consumers’: PSBs requested to evaluate all mergers until date

    In a transfer that might pave the best way for mergers within the public-sector banks (PSB) area, the federal government has requested banks to share the advantages of mergers which have occurred until date.

    “The government has sought data on internal assessment by banks regarding impact of amalgamation on various stakeholders that includes employees, customers and operational efficiency,” Sunil Mehta, chief govt of Indian Banks’ Association, who was earlier chairman of Punjab National Bank, informed The Indian Express.

    “The process of amalgamation of banks is over and now is the time to reap benefits from this. The benefits can be huge in terms of rationalising the number of branches and using IT for Digital banking — all this will ultimately lead to reduction in cost of operations and add to profitability and customer convenience,” Mehta added.

    Banks are almost certainly to supply knowledge on it this week and the transfer might pave the best way for additional consolidation of banks within the nation, hinted sources within the know.

    “The government’s strategy on banks is two-pronged — one is to privatise banks and the other is to merge banks to make them financially stronger. This move could be a signal towards more consolidation in the banking space,” mentioned a supply on a situation of anonymity.

    As a part of its technique to make banks larger and financially stronger, the federal government in 2019, introduced a merger of 10 public sector banks to 4 — the variety of PSU banks have been lowered from 27 to 12.

    As a part of the merger, Corporation Bank and Andhra Banks had been merged with Union Bank of India, Syndicate Bank was merged with Canara Bank, Oriental Bank of Commerce and United Bank of India had been merged with Punjab National Bank and Allahabad Bank was merged with Indian Bank.

    These mergers grew to become operational from April 2020 after the merger of Dena Bank and Vijaya Bank with Bank of Baroda and of affiliate banks with State Bank of India.

    The consolidation technique of the federal government is with an intention to amplify banks that may compete with not simply Indian non-public banks but additionally banks globally. Post the mergers until date, SBI has the very best market share amongst all banks at 22 per cent and PNB’s — second largest public-sector financial institution — market share is about 8 per cent.

    As a part of its privatisation technique, the federal government is seeking to privatise two banks that embody Mumbai-headquartered Central Bank of India and Bank of India that haven’t been merged with any financial institution but.

  • PNB hikes rates of interest on mounted deposits by 10 to twenty bps: Details right here

    On mounted deposits beneath ₹2 crore, the general public sector lender Punjab National Bank (PNB) has elevated rates of interest. The financial institution’s official web site states that the brand new rates of interest will take impact tomorrow, July 4, 2022. Following the adjustment, the financial institution elevated rates of interest on mounted deposits maturing in 1 12 months to 2 years and as much as 3 years by 10 to twenty bps.

    PNB FD Rates 2022

    The financial institution will proceed to provide a 3 per cent rate of interest on mounted deposits with a maturity interval of seven to 45 days, whereas PNB will proceed to supply a 3.25 per cent rate of interest on deposits with a maturity tenure of 46 to 90 days. Fixed deposits maturing in 180 days or lower than one 12 months proceed to earn an rate of interest of 4.50 per cent, whereas deposits maturing in 91 to 179 days proceed to pay an rate of interest of 4.00 per cent. On deposits maturing in 1 12 months and as much as two years, PNB will now present an rate of interest of 5.30 per cent, up from 5.20 per cent, a hike of 10 bps. On deposits maturing in 2 years and as much as three years, PNB has elevated the rate of interest by 20 foundation factors, from 5.30 per cent to five.50 per cent. Deposits maturing in additional than three years and as much as 5 years will proceed to supply an rate of interest of 5.50 per cent, whereas deposits maturing in additional than 5 years and as much as ten years will get PNB’s most rate of interest of 5.60 per cent. The financial institution will present an rate of interest of 5.50 per cent on a singular, 1111-day time period.

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    PNB FD Rates (pnbindia.in)

    On behalf of senior residents, PNB has talked about on its web site that “The Senior residents shall get a further fee of curiosity of fifty bps over relevant card charges for all maturities on home deposits of lower than Rs. 2 Crore. In case of workers members in addition to retired workers members who’re additionally Senior Citizens, most fee of curiosity to be allowed over relevant card fee shall be 150 bps besides in case of PNB Tax Saver Fixed depost scheme, the place the utmost fee of curiosity to be allowed over relevant card fee is 100 bps.”

    PNB UTTAM FIXED DEPOSIT SCHEME

    Investors can deposit greater than ₹15 lakh into the PNB Uttam Fixed Deposit Scheme, a particular deposit scheme provided by the financial institution. The length of this layer scheme ranges from 91 days to 1111 days, and the rate of interest ranges from 4.05% to five.55% respectively.

    View Full Image

    PNB FD Rates (pnbindia.in)

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  • Bank holidays in July 2022: Here is the complete listing of holidays

    Bank holidays in July 2022: Indian banks are prone to be shut for eight days throughout the month of July 2022, as per the main points out there on the Reserve Bank of India’s (RBI) web site. While there are some financial institution holidays that can be noticed throughout the nation, there are just a few that are going to be state/region-specific.

    The RBI has given the dates on which banks can be shut in July 2022. The central financial institution categorises banking holidays within the following method:

    Holiday beneath Negotiable Instruments Act.
    Holiday beneath Negotiable Instruments Act and Real-Time Gross Settlement Holiday.
    Banks’ Closing of Accounts.
    List of financial institution holidays in July 2022:

    July 1: Kang (Rathajatra)/Ratha Yatra. Banks in Bhubaneswar and Imphal can be closed.

    July 7: Kharchi Puja. Banks in Agartala can be closed.

    July 9: ld-Ul-Ad’ha (Bakrid). Banks in Kochi and Thiruvananthapuram can be shut.

    July 11: Eid-ul-Azha. Banks in Jammu and Srinagar area are to be closed.

    July 13: Bhanu Jayanti. Banks in Gangtok are to be closed.

    July 14: Beh Dienkhlam. Banks in Shillong can be shut.

    July 16: Harela. Banks in Dehradun can be closed.

    July 26: Ker Puja. Banks in Agartala can be closed.

    Apart from the above talked about holidays, banks may also be shut on second and fourth Saturdays and all Sundays. However, it have to be famous that regardless of these financial institution holidays account holders can use web banking and cellular banking to do a few of their financial institution work.

  • PNB hikes rates of interest on mounted deposits of 1 to 10 years: Details inside

    Punjab National Bank (PNB), the nation’s second-largest public-sector lender, has raised rates of interest on mounted deposits of lower than ₹2 crore. The financial institution issued this announcement right now, June 14, 2022, and on account of the modification, the financial institution has raised rates of interest on deposits maturing in a single 12 months to 10 years.

    PNB FD Rates

    The financial institution will proceed to supply a 3 per cent rate of interest on mounted deposits maturing in 7 to 45 days and a 3.25 per cent rate of interest on mounted deposits maturing in 46 to 90 days. Term deposits maturing in 91 to 179 days will proceed to pay 4.00 per cent curiosity, whereas mounted deposits maturing in 180 days to lower than one 12 months pays 4.50 per cent curiosity. PNB will now give an rate of interest of 5.20 per cent on deposits of 1 12 months and as much as two years, up from 5.10 per cent beforehand.

    The financial institution will now present an rate of interest of 5.30 per cent on deposits maturing in additional than two years and as much as three years, up from 5.10 per cent beforehand, a 20 foundation level improve. PNB will now present an rate of interest of 5.50 per cent on deposits of greater than three years and as much as 5 years, up from 5.25 per cent beforehand, a 25 foundation level improve. PNB will now give an rate of interest of 5.60 per cent, up from 5.25 per cent earlier than, a hike of 35 bps on deposits of 5 years or extra and as much as 10 years. The financial institution has applied a brand new tenure of 1111 days with an rate of interest of 5.50 per cent for normal prospects and a fee of 6 per cent for senior residents.

    For the extra rate of interest good thing about senior residents, PNB has talked about on its web site that “The Senior residents shall get a further fee of curiosity of fifty bps over relevant card charges for all maturities on home deposits of lower than Rs. 2 Crore. In case of workers members in addition to retired workers members who’re additionally Senior Citizens, most fee of curiosity to be allowed over relevant card fee shall be 150 bps besides in case of PNB Tax Saver Fixed depost scheme, the place the utmost fee of curiosity to be allowed over relevant card fee is 100 bps.”

    “The revised rates of interest will probably be relevant to recent Deposits and renewal of current deposits with impact from 14.06.2022,” the financial institution has talked about on its web site.

    View Full Image

    PNB FD Rates 2022 (pnbindia.in)

    Meanwhile, the nation’s largest lender, State Bank of India (SBI) has additionally hiked rates of interest on mounted deposits of lower than ₹2 Cr. The financial institution has hiked rates of interest by 15 to twenty bps on deposits of 211 days to lower than 3 years. The new rates of interest of SBI mounted deposits are in drive from right now, 14th June 2022.

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  • Post RBI transfer, banks hike lending charges: EMIs to leap

    With the Reserve Bank of India (RBI) climbing the repo fee by 50 foundation factors (bps) to 4.9 per cent to tame inflation on Wednesday, banks have now began elevating their repo-linked lending fee (RLLR).

    ICICI Bank on Thursday raised its exterior benchmark lending fee by 50 foundation factors to eight.6 per cent, whereas Bank of Baroda elevated its RLLR to 7.4 per cent. Punjab National Bank (PNB) raised the RLLR to 7.4 per cent with impact from June 9. HDFC has hiked the retail prime lending fee by 50 bps with impact from June 10.

    Bank of India jacked up the RLLR to 7.75 per cent. RBL Bank has additionally raised its RLLR by 50 bps to 10 per cent, efficient June 8. Federal Bank has additionally factored within the improve in repo fee and elevated the rates of interest accordingly. On May 7, HDFC Bank raised its marginal value of funds-based lending fee (MCLR) on loans throughout all tenures by 35 bps, efficient from June 7. Earlier HDFC Bank had raised MCLR by 25 bps on May 7.

    The rise in RLLR will result in a rise in equated month-to-month instalments (EMIs) on residence, car and different private and company loans. The improve in EMI together with doable subsequent fee hikes and the anticipated inflation (together with meals inflation) might visibly harm the money flows of the borrower.

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    Other banks are set to extend their RLLR within the coming days. Banks are anticipated to jack up MCLR within the wake of the second repo fee hike within the final one-and-a-half months and the rise in value of funds for banks.

    On May 4, the RBI jacked up the repo fee by 40 bps to 4.4 per cent and the money reserve ratio (CRR) by 50 foundation factors to 4.50 per cent, to deliver down the elevated inflation and sort out the impression of geopolitical tensions. Banks had then raised RLLR by 40 bps.

    Banks which are providing RLLR should hike the rates of interest by one other 50 bps. As per an October 2019 round from the RBI, banks linked their retail loans to exterior benchmark lending charges (EBLR). As a consequence, most banks have adopted the repo as their benchmark. As banks borrow cash from the RBI on the repo fee, any change in it impacts the lending fee of banks.

    Analysts now count on one other repo fee hike within the August financial coverage evaluation.

    MCLR-linked loans had the biggest share (53.1 per cent) of the mortgage portfolio of banks as of December 2021. The share of EBLR loans in complete advances was 39.2 per cent in December 2021, in accordance with the RBI.