Punjab National Bank (PNB) is trading flat in wake of reports that Jet Airways' main promoter and chairman Naresh Goyal has pledged entire 57,933,665 shares constituting 51% holding in the airline effective 8 January to PNB with a “non-disposal undertaking”. Report said that the the deal may be valued at over Rs. 2,600 crore, to PNB.
PNB is an Indian financial services company based in New Delhi, India and serves over 80 million customers.
In an interview with CNBC TV18, Ram Sangapure, ED, PNB said that for the fourth quarter probably the deposit rates are not going to come down substantially, because the liquidity requirement in the fourth quarter is usually is higher for the banking industry. Talking about if the company expects rate cut after the budget, he said, "The rate cut may come only after Budget or may be around that time, definitely not in the month of January. I don’t see that the Reserve Bank of India (RBI) is inclined to take a call in the month of January itself. Given the volatility in forex markets and also the inflation rate which is now increasing slightly, not really much concern but probably RBI is not very keen at this point in time to take a call, change its stance of monetary policy at this point in time. RBI is concerned about changing the stance of the monetary policy rather than reducing once and again going up after a month or two giving mixed signals to the market; that probably RBI is trying to avoid".
He mentions the fact that if RBI reduces the Repo rate then there are chances that most of the commercial banks will reduce the lending rates. "In the month of a June probably there could be a further decline in rate of interest on deposits, particularly term deposits. That we may visualise somewhere between 25 to 50 basis points in a bucket of one year, maybe 90 days to one year bucket. Probably we might see a decline from 50 basis points to 75 basis points", he added.
Commenting on the effect of reducing the lending rate in the books of the bank, he said, "The non-performing assets (NPA) position of most of the banks, the spread is a result of all these combination of even the NPA percentage. NPA percentage is gone up substantially during the last couple of quarters and the spread if you want to maintain then we have to tweak somewhere. If we reduce the lending rates at this point in time probably we may not be able to maintain our net interest margins (NIMS)".
PNB is an Indian financial services company based in New Delhi, India and serves over 80 million customers.
In an interview with CNBC TV18, Ram Sangapure, ED, PNB said that for the fourth quarter probably the deposit rates are not going to come down substantially, because the liquidity requirement in the fourth quarter is usually is higher for the banking industry. Talking about if the company expects rate cut after the budget, he said, "The rate cut may come only after Budget or may be around that time, definitely not in the month of January. I don’t see that the Reserve Bank of India (RBI) is inclined to take a call in the month of January itself. Given the volatility in forex markets and also the inflation rate which is now increasing slightly, not really much concern but probably RBI is not very keen at this point in time to take a call, change its stance of monetary policy at this point in time. RBI is concerned about changing the stance of the monetary policy rather than reducing once and again going up after a month or two giving mixed signals to the market; that probably RBI is trying to avoid".
He mentions the fact that if RBI reduces the Repo rate then there are chances that most of the commercial banks will reduce the lending rates. "In the month of a June probably there could be a further decline in rate of interest on deposits, particularly term deposits. That we may visualise somewhere between 25 to 50 basis points in a bucket of one year, maybe 90 days to one year bucket. Probably we might see a decline from 50 basis points to 75 basis points", he added.
Commenting on the effect of reducing the lending rate in the books of the bank, he said, "The non-performing assets (NPA) position of most of the banks, the spread is a result of all these combination of even the NPA percentage. NPA percentage is gone up substantially during the last couple of quarters and the spread if you want to maintain then we have to tweak somewhere. If we reduce the lending rates at this point in time probably we may not be able to maintain our net interest margins (NIMS)".
No comments:
Post a Comment