No drastic reduction in interest rates in long term: PNB

The country's second largest public sector lender, Punjab National Bank (PNB), today said there would be no drastic reduction in interest rates in the long term while in short term they will remain benign.

"In the long term I don't see interest rates going down drastically," PNB CMD K C Chakrabarty, who will take charge as RBI Deputy Governor on Monday, said here.

However, he said, in the short-term interest rates look benign.

"Irrespective of cost of fund, today public sector banks are making money available to various category of borrowers at the rate which is less than market determined rate," he said.

 

Banks can further reduce rates provided cost of funds come down, he added.