Punjab National Bank has decided to hike lending rates across-the- board and an announcement in this regard is expected in a day or two.
Meanwhile, the bank said it would raise up to Rs 2,200 crore tier I and tier II capital.
PNB Chairman S.C. Gupta said with cost of funds rising after the RBI hiked short-term rates last week and pressure on profitability, the bank has to revise the lending rates, including for home, personal and other retail loans.
Meanwhile, the bank has posted a net profit of Rs 367.52 crore for the quarter ended June 30 as compared to Rs 358.16 crore for the corresponding quarter last financial year, an increase of 2.61 per cent.
The bank said its total income had increased from Rs 2,542.79 crore for the quarter ended June 30, 2005, to Rs 2,921.80 crore for the same quarter this year.
Further, the bank's Board has declared a final dividend of 60 per cent which is equivalent to Rs 6 per share for FY-06. This is an addition to the interim dividend of 30 per cent at Rs 3 per share paid on December 19, 2005.
With the declaration of the final dividend, the total dividend for FY-06 is 90 per cent.
From: Tribune News Service, 01-08-06
