Upto 7.50% Interest On FDs? India's 2nd Largest Public Sector Bank Raises Rates - See New Rates

Punjab National Bank (PNB), India's second-largest public sector bank with a 130-year legacy, has announced a hike in interest rates on bulk fixed deposits ranging between Rs 3 crore and Rs10 crore. The revised rates came into effect on December 13, 2024, as per the bank’s official website.

Following this revision, the maximum return offered on these deposits has been raised to 7.50%, with increases of up to 60 basis points across various tenure options.

New bulk FD rates by tenure

• 7–45 days: Interest rate unchanged at 6%.
• 46–60 days: Continues at 6.40%.
• 91–179 days: Increased by 50 bps to 7% from 6.50%.
• 61–90 days: Remains at 6.60%.
• 180–270 days: Revised to 7.25%, up by 60 bps from 6.65%.
• 271 days–1 year: Now offers 7.25%, up from 6.75%.
• 1 year: Raised to 7.50%, 25 bps higher than the previous 7.25%.

Rates for deposits maturing in 1–2 years will stay at 6.80%, while those for 2–3 years and 3–1203 days will remain at 6.50% and 6.25%, respectively. Fixed deposits with tenures of 1204 days and 1205 days–5 years will continue earning 6.15% and 6.25%, respectively.

For longer tenures, PNB will maintain rates at 5.60% for 5 years to 1894 days, 5.45% for 1895 days, and 5.60% for 1896 days to 10 years.

PNB clarified on its website that additional interest rates for senior citizens and staff accounts are not applicable to deposits in the Rs 3–10 crore category.

PNB’s market performance

As of September 30, 2024, PNB held gross advances worth Rs 10.61 lakh crore, up from Rs 9.83 lakh crore as of March 31, 2024, securing its position as India’s third-largest public sector lender with a market share of 5.8%, according to CRISIL.

The bank’s deposits grew to Rs 14.58 lakh crore, reflecting an increase13.69 lakh crore at the end of March 2024.

However, the domestic CASA ratio dipped to 39% from 41.4% during the same period, while the cost of domestic deposits rose to 5.16% in Q2 FY25 compared to 4.89% in FY24.

Savings and term deposits below Rs 2 crore accounted for nearly 79.8% of total deposits as of June 30, 2024.

CRISIL has reaffirmed PNB’s “AAA/Stable” rating for its Rs 3,000 crore Tier II bonds under Basel III, citing a robust market presence and continued support from the Government of India.