PNB signs MoU with IL&FS

IMPETUS TO FINANCING: K. C. Chakrabarty (centre), CMD, Punjab National Bank, flanked by Hari Shankaran (left), MD, IL&FS, and V. Krishna Murthy, Chairman, National Competitiveness Council, at the MoU signing function in New Delhi on Tuesday.   | Photo Credit: — PHOTO: S. SUBRAMANIUM

Special Correspondent

To finance industrial infrastructure projects

NEW DELHI: Punjab National Bank on Tuesday entered into a memorandum of understanding (MoU) with IL&FS Cluster Development Initiative Ltd in order to provide impetus to financing of industrial infrastructure projects.

The MoU was inked here in the presence of V. Krishna Murthy, Chairman, National Competitiveness Council, who hailed it as a significant development that would provide further boost to the manufacturing sector.

“Inflation is higher; there would be pressure on interest rate. At present, there is no plan to increase deposit rates,” PNB Chairman and Managing Director K. C. Chakrabarty, who attended the ceremony, told reporters.

The outlook on interest rates seemed to be stable, he said, adding that the interest rates were still higher than the inflation and there was incentive for the depositors.

On Monday, ICICI Bank CEO K. V. Kamath had said that liquidity was good and there was no indication of any rate hike. “As of now, there is no signalling of interest rate hike...we are not seeing any movement,” he had said.

Under the MoU, Mr. Chakrabarty said PNB would finance infrastructural projects covering various manufacturing sectors. Mr. Krishna Murthy, who was the chief guest, referred to the contribution of the small and medium industries to the gross domestic product (GDP).

The contribution of the manufacturing sector to GDP would have to be enhanced and for this access to finance to meet the needs of the SMEs would have to be effectively met.