Home Car Loan The wait for the reduction of EMI is increasing continuously. Many people are waiting for the reduction of their loan EMI. However, this is not possible due to the lack of reduction in interest rates by RBI. Banks are not reducing interest rates on loans. But now good news has come. 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 has said that interest rates are at their highest level and they should come down by the end of this year. That is, the EMI of the loan will start decreasing from the end of this year.
No change expected in repo rate for the eighth time
The Monetary Policy Committee (MPC) is expected to keep the policy rate repo unchanged for the eighth consecutive time. The meeting of the Monetary Policy Committee 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, monetary policy stance of other countries. I think the rates have reached a peak. I think after some time, maybe by the end of this year, we can see some reduction in interest rates. “He said that the deposit rate should not increase, because the rates have already changed on 95 percent of deposits.
Focus will increase on these areas
Goyal said retail, agriculture and MSMEs (RAM) will be the focus areas for the bank, but it will not shy away from financing good corporate loans. “RAM’s share in total loans is around 55 per cent. We want to increase this number to around 60 per cent in the next four to five years. This year we have set a target of achieving 57 per cent. As I told you we are one of the largest banks in the country, although our focus is on RAM, but if an opportunity comes, we will not let it go,” he said.
Demand for infra loan is increasing
He said that as far as corporate loans are concerned, there is a growing demand for infrastructure projects, especially roads. “Even some of the big companies are planning to increase their capacity. So there is a growing demand from the steel sector and even the renewable energy sector, where we are seeing extremely high demand,” Goyal said.
The bank got bumper profit
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 per cent 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 and small, cottage and medium (MSME) enterprise segment, giving good corporate loans and improving recovery etc.
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