PNB signs MoU with ILFS to fund infrastructure projects

New Delhi: Punjab National Bank (PNB) entered into a Memorandum of Understanding (MoU) with ILFS Cluster Development Initiative Ltd (ILFS-CDI) to help finance a variety of industrial infrastructure projects and small and medium enterprise (SME) units in identified clusters.

Under the MoU, ILFS CDI will be responsible for sourcing of the projects, project structuring, project development, engineering and procurement, project management and project monitoring. PNB will finance the projects.

The MoU was signed by Mr R.C.M. Reddy, Managing Director, ILFS-CDI and Mr Jagat Ram, General Manager, SME for PNB in the presence of Mr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, Dr K.C. Chakrabarty, Chairman and Managing Director of PNB and Mr Hari Shankaran, Managing Director, IL&FS.

Dr Chakrabarty said the bank had no immediate plans to increase deposit rates. “Our interest rates on both lending and deposit are still very attractive. We have enough liquidity also”, he said.

He felt that the outlook on interest rates seem to be stable and pointed out interest rates were still higher than the inflation rates and there was incentive for depositors to park money with banks.