NEW DELHI: Life Insurance Corporation (LIC) of India has entered into a strategic agreement with Punjab National Bank (PNB) to enable the bank’s customers to have access to the wide range of products of LIC.
The agreement was signed in the presence of LIC Chairman T. S. Vijayan and the bank’s Chairman and Managing Director K. C. Chakrabarty at a function here on Monday. LIC has so far tied up with 31 banks through corporate agency model and with banks through referral model for developing banc assurance.
Speaking on the occasion, Dr. Chakrabarty said the bank had no immediate plans to further reduce lending rates.
“We are already aggressive on PLR (prime lending rate) cut but have no immediate plans,” he told reporters.
He further said unless banks were able to reduce their deposit rates, they would not be able to reduce lending rates any more.
“The government is giving 8 per cent on the post office savings schemes, so I cannot go down below that. But removal of certain structural bottlenecks like cross-subsidisation of interest rates could help in the reduction of prime lending rates,” he added.
Gramin Bank’s feat
Haryana Gramin Bank, sponsored by PNB, had achieved a milestone by introducing centralised banking solution (CBS), which would enable customers to carry out banking at locations convenient for them.
“In view of numerous advantages, which had been derived by implementing CBS at commercial banks, it was felt that CBS should also be implemented in regional rural banks (RRBs),” Mr. Chakrabarty added.