PNB and six other Indian banks revise fixed deposit rates for senior citizens

  • Stock Market News
PNB and six other Indian banks revise fixed deposit rates for senior citizens
Credit: © Reuters.

Seven Indian banks, including Punjab National Bank (PNB), Bank of Baroda (BOB), Bank of India (BOI), Karnataka Bank, South Indian Bank, IDFC Bank, and Jana Small Finance Bank have updated their fixed deposit rates for senior and super senior citizens during the week ending today.

PNB now offers a top rate of 8.05% for super seniors on a tenure of 444 days. This followed an increase in interest rates by up to 50 basis points on fixed deposits under Rs 2 Cr, effective November 1, 2023. The bank now provides a return of 7.25% for the general public and 7.75% for senior citizens on a 444-day term. Senior citizens aged between 60 to 80 receive an additional 50-80 basis points on domestic deposits under Rs. 2 crore. Super senior citizens aged 80 and above are granted an additional 80 basis points across all tenures.

Meanwhile, BOB offers up to 1.0% higher interest on certain fixed deposits for seniors. The BOI provides a maximum rate of 7.40% to super seniors on a tenure of three to less than five years. Karnataka Bank's top rate for seniors is at 7.65% on one year and above fixed deposits, while South Indian Bank offers a maximum of 7.50% interest to seniors on one-year-and-one-day fixed deposits.

In comparison, IDFC bank's highest fixed deposit rate is at 7.75% on a tenure of 549 days to two years, with an additional 0.50% for seniors. Jana Small Finance Bank provides the highest rate of 9.0% for seniors on fixed deposits with a tenure of more than two to three years (1,095 days). Elsewhere, HDFC Senior Care fixed deposit offers 7.75% for tenures of five years and one day to 10 years.

In other news, PNB's net profit rose by 327% to Rs 1,756 Cr from Rs 411.27 Cr in Q2FY23. Net interest income increased by 20% YoY to Rs 9,922 crore, and other income grew by 6.3% to Rs 3,028 crore. Provisions fell by Rs 1,462 crore to Rs 3,444 crore from Q2FY23. Gross non-performing assets (NPAs) decreased to 6.96% as of September from the previous quarter's 7.73%. Total income for Q2 FY'24 was Rs 29,383 crore, a YoY growth of 27.7%. For HY1FY'24, total income was Rs 57,962 crore, a growth of 30.9%. Non-interest income climbed to Rs 3,028 crore for Q2 FY'24 and Rs 6,462 crore for HY1FY'24, representing growth of 6.4% and 20.0%, respectively.

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