Big news related to banking in election season, interest rates may come down soon, know who has said this
Punjab National Bank (PNB) Managing Director (MD) Atul Kumar Goyal has said that interest rates are at their highest level and should come down by the end of this year
A few days before the monetary policy review meeting of the Reserve Bank of India (RBI), Punjab National Bank (PNB) Managing Director (MD) Atul Kumar Goyal said that interest rates are at their highest level and should come down by the end of this year. The Monetary Policy Committee (MPC) is expected to keep the policy rate repo unchanged for the eighth consecutive time.
The Monetary Policy Committee meeting is scheduled to begin on June 5. The decision of the committee will be announced on June 7. Goyal told 'PTI-Bhasha', "Interest rates depend on many factors like growth, inflation, and monetary policy stance of other countries. I think the rates have reached a peak. I think that after some time, maybe by the end of this year, we can see some reduction in interest rates. Goyal said that there should not be an increase in the deposit rate, as the rates on 95 percent of deposits have already changed. Goyal said that retail, agriculture, and MSME (RAM) will be the focus areas for the bank, but there will be no retreat from financing good corporate loans. He said, "RAM's share in total loans is around 55 percent. We want to increase this number to around 60 percent in the next four to five years. This year we have set a target of achieving 57 percent. As I told you we are one of the largest banks in the country, and although our focus is on RAM, if an opportunity comes, we will not let it go. He said that as far as corporate loans are concerned, the demand is increasing for infrastructure projects, especially roads. Goyal said, "Even some large companies are planning to increase their capacity. So the demand is increasing from the steel sector and even the renewable energy sector, where we are seeing extremely high demand."
PNB has seen a steady improvement in its financial position and has recorded the highest growth in terms of profit in FY 2023-24. PNB topped the list of 12 public sector banks with the highest profit growth of 229 percent in the financial year ended FY 2023-24.
The net profit of the bank tripled to Rs 8,245 crore. Talking about the strategy to improve profitability, he said that the focus will be on expanding the retail, agriculture, small, cottage, and medium (MSME) enterprise segments, giving good corporate loans improving recovery, etc.
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