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interest rate on advances

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master table - Applicable upto 31.08.2019
Internal Risk Rating/
PNB Score/PNB Score SME		 External rating
AAA AA A BBB Unrated BB & Below Unrated$
A1 >80 BR+0.20 BR+0.25 BR+0.65 BR+1.25 BR+1.50 BR+2.15 BR+2.15
A2 >70<=80 BR+0.20 BR+0.30 BR+0.70 BR+1.30 BR+1.55 BR+2.15 BR+2.15
A3 >64<=70 BR+0.55 BR+0.65 BR+1.05 BR+1.65 BR+1.90 BR+2.50 BR+2.50
A4 >58<=64 BR+1.05 BR+1.10 BR+1.50 BR+2.10 BR+2.35 BR+3.00 BR+3.00
B1 >52<=58 BR+1.60 BR+1.65 BR+2.05 BR+2.65 BR+2.90 BR+3.50 BR+3.50
B2 >46<=52 BR+2.50 BR+2.55 BR+2.95 BR+3.60 BR+3.85 BR+4.45 BR+4.45
B3 >40<=46 BR+4.30 BR+4.35 BR+4.75 BR+5.00 BR+5.00 BR+5.00 BR+5.00
C1 >35<=40 BR+5.00
C2 >25<=35
C3 =25

$All unrated claims on Corporates, AFCs, and NBFC-IFCs having aggregate exposure from banking system of more than INR 100 Crores which were rated earlier and subsequently have become unrated or having aggregate exposure from banking system of more than INR 200 Crores.

Following Interest Rate factors to be added in ROI for all Term Loan Accounts under B1, B2 & B3 (internally rated), over and above the spread prescribed under the above Master Table:

Rating Grade Additions in ROI for Term Loan Accounts
B1 0.05%
B2 0.10%
B3 0.50%


MASTER TABLE FOR ADVANCES - Applicable w.e.f from 01.09.2019
Internal Risk Rating/
PNB Score/PNB Score SME		 External rating
AAA AA A BBB Unrated BB & Below Unrated$
A1 >80 BR+0.20 BR+0.25 BR+0.65 BR+1.70 BR+1.95 BR+2.55 BR+2.55
A2 >70<=80 BR+0.20 BR+0.30 BR+0.70 BR+1.70 BR+1.95 BR+2.55 BR+2.55
A3 >64<=70 BR+0.55 BR+0.65 BR+1.05 BR+2.15 BR+2.40 BR+3.00 BR+3.00
A4 >58<=64 BR+1.35 BR+1.50 BR+1.85 BR+2.65 BR+2.90 BR+3.50 BR+3.50
B1 >52<=58 BR+2.20 BR+2.35 BR+2.70 BR+3.50 BR+3.75 BR+4.35 BR+4.35
B2 >46<=52 BR+3.15 BR+3.35 BR+3.65 BR+4.50 BR+4.75 BR+5.30 BR+5.30
B3 >40<=46 BR+5.40 BR+5.55 BR+5.90 BR+6.00 BR+6.00 BR+6.00 BR+6.00
C1 >35<=40 BR+6.00
C2 >25<=35
C3 =25

$All unrated claims on Corporates, AFCs, and NBFC-IFCs having aggregate exposure from banking system of more than INR 100 Crores which were rated earlier and subsequently have become unrated or having aggregate exposure from banking system of more than INR 200 Crores will attract a risk weight of 150%.

agriculture advances:

  • Regular Crop Loans/KCC up to Rs. 3 lacs: 7%
  • Loans up to Rs. 20.00 lacs (including regular crop loans/KCC above Rs. 3 lacs): BR + 2%
  • Loans above Rs. 20.00 lacs: As per Master Table above.

MSME advances:

  • Advances up to Rs. 50000/-: BR
  • Advances above Rs. 50000/- & up to Rs 20 lacs: BR+2.25%
  • Advances above Rs. 20 lacs: As per Master Table above

Minimum ROI for MSME advances BR i.e presently 9.60 % *

Maximum ROI for MSME advances BR+2.50% * treating the investment grade as PNB B-3 as per internal rating

Mean ROI for MSME advances BR+2.13% *

*Subject to internal/external rating of the borrower and the change of BR&ROI structure from time to time. Term premia @ 0.50% to be added for loans repayable in three years & above.

The total yearly interest cost on fixed amount of credit of Rs.100000/- based on Minimum/Maximum/ Mean ROI on MSME advances will be as under till any change in our ROI structure or Base Rate.

  • At Minimum ROI @ 9.60% =Rs.10034/-
  • At Maximum ROI @ 13.85% =Rs.14764/-
  • At Mean ROI @ 11.73% =Rs.12382/-

other advances:

  • Advances up to Rs. 2 lacs: BR+ 3%
  • Advances above Rs. 2 lacs {including CRE(RH) Future Lease Rentals, & NBFCs (AFC)}: As per Master Table above
  • For advances over 2 lacs to CRE (Others) & all other NBFCs: 100 basis points (1.00%) over and above rates prescribed in the Master Table.

other guidelines

  • Tenor premium of 0.50% shall be charged for advances repayable in 3 years and above.
  • Minimum rate after allowing concessions shall not be below the Base Rate.
  • Advances where valid External Risk Rating is not available or external rating expired be treated as unrated category.

scheme specific rate of interest

Advance against Bank`s Own Deposits:

Particulars Rate of interest
Rupee Loans & Advances against Term Deposits standing in the name of Borrowers (singly/jointly or as a guardian in case of Individual Borrowers ), including NRE deposits: 1% above the rate allowed on deposit
Advances to Borrowers against third party term deposits including NRE deposits standing in the name of individuals or entities other than individuals e.g. Partnership Concerns, Societies, Trusts, Public/ Private Ltd Cos etc. 2% above the rate allowed on deposit subject to minimum of Base rate.
Rupee Loans & Advances against FCNR(B) Deposits standing in the name of the borrower (singly/jointly or as a guardian), Advances against term deposits held by the bank for less than minimum stipulated period of FDR (on cancellation) and for advances against balance lying in current/ savings a/c) BR
Advances against third party FCNR(B) deposits BR+0.75%

Advance against:

Particulars Base Rate System
Life Insurance Policies including Postal Life Insurance (LIP) BR + 1.00%

Postal securities (NSC/KVP/IVP)/ RBI Relief Bonds
Demand Loan BR + 3.00%
Overdraft BR + 3.50%
Other Govt. Securities, Bonds, Units of Mutual Fund, FDRs of PNB Subsidiaries, etc. BR + 3.50%
Postal Term Deposits BR + 3.00%

Schemes for financing against pledge/e-pledge of warehouse receipts issued by approved Collateral Managers including under tie up with N-SPOT

Particulars ROI

Loans up to Rs. 50 lakh to

Individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided banks maintain disaggregated data on such loans] engaged in Agriculture & allied activities,

Corporates, Partnership firms and institutions engaged in Agriculture and allied activities.

 BR+1%
Loans to Micro, Small & Medium Enterprises including food and agro processing units under MSME. BR+1%
Others: Normal ROI

Above rate of interest as per item no. 3 (i) & (ii) above will be applicable on fresh loans sanctioned up to 30.09.2016 eligible under agriculture credit and all categories of MSMEs classified under priority sector including food and agro processing units with risk rating B3 (Score 40) and above wherever applicable, till next renewal or adjustment of demand loan with a ceiling of maximum 12 months.

For financing under following schemes falling under Agriculture Credit shall be done @ BR+0.50% (Term Premia):

Financing under Capital Investment Subsidy Scheme of National Horticulture Board (NHB)/National Horticulture Mission or any such Govt. Agency for construction/ expansion/ modernization of cold storages and storages for horticulture produce (Subsidy through NHB),

Financing under Capital Investment Subsidy Scheme for construction/renovation/ expansion of rural godowns Scheme & Advances for construction of Godowns (as per FCI/CWC specifications with long term lease agreements with FCI /CWC /SWC /Reputed Corporates who shall undertake to remit the monthly rent directly to bank) with long term lease agreements with FCI/CWC/SWC

This concessional Rate will be applicable on loans sanctioned/renewed up to 31.03.2016 and shall remain valid till next renewal/review in case of working capital/term loans respectively.

Food & Agro Processing Industries classified under MSME as per MSMED Act 2006:

A special package has been sanctioned to Food & Agro based Industries, which is available up to 31.03.2017 as detailed below:

Rate of interest:

Internal Risk Rating/ PNB Score Collateral Coverage linked Special ROI
Above 100% Above 75%-100% 50%-75% Below 50%
A1& A2 >70 BR BR BR+ 0.25% BR+0.50%
A3, A4 & B1 =70>52 BR+0.50% BR+0.75% BR+1.00% BR+1.25%

(Term premium (0.50%) would be applicable in loans repayable in 3 years & above.)

In the accounts having credit risk rating below B1 (Score below 52), normal rate of interest shall be applicable.

Scheme for financing manufacturers/dealers/sellers of agriculture inputs such as fertilizers, pesticides: ROI under this segment is linked with the value of collateral security and to be charged as under irrespective of amount of advance:

Realizable Value of Collateral Security Rate of Interest
Minimum 100% BR+2.00%
More than 100% less than 150% BR+1.50%
More than 150% BR+1.00%

Discounting Of Bills

Tenor of the Bills backed by confirmed ILCs of approved banks Rate of Interest
Upto 90 days BR + 0.15%
91 to 180 days BR + 0.25%
181 days – upto less than 1 year BR + 0.50%
Bills not backed by ILCs Interest Rates as applicable to Working Capital Limits

Loans to Arhtiyas and Commission Agents under Micro, Small & Medium Enterprises under priority sector shall be sanctioned as under:

S. No. amount ROI
i Upto Rs. 25.00 lacs BR+1.50%
ii Above Rs. 25 lacs BR+2.00%

Intermediary Agencies

Particulars ROI
(a) Loans sanctioned upto 31.01.2000
(i) Finance granted to Intermediary Agencies (excluding those for Housing)for on lending to Ultimate Beneficiaries and Agencies providing input support BR + 3.00
(ii) Finance granted to Housing Finance Intermediary Agencies for on lending to Ultimate Beneficiaries BR + 3.00
(b)Term Loans sanctioned w.e.f. 01.02.2000 and Working Capital Advance to Intermediary Agencies (including Housing Finance Agencies) Minimum BR + 3.00

Financing against pledge of warehouse receipts issued by CWC having forward sale contract with members/brokers of NMCE:

Particulars ROI
Upto Rs.2 Lakh BR + 3.00%
Over Rs.2 Lakh BR + 4.00%

Loan for Bank Premises shall be sanctioned @ BR+3%.

Clean Advances shall be sanctioned @ BR+6.50%

DRI advances shall be sanctioned @ 4%.

rupee export credit:

Particulars Base Rate System

Pre-shipment Credit

Upto 270 days

 BR + 0.75%
Against incentives receivable from Govt. covered by ECGC Guarantee (upto 90 days)

Post-Shipment Credit:

Demand bills for transit period (as specified by FEDAI)

Usance bills (For total period comprising usance period of export bills, transit period as specified by FEDAI and grace period, wherever applicable).Upto 180 days

Overdue bills upto 180 days from the date of advance

Against incentives receivable from Govt. covered by ECGC Guarantee (upto 90 days)

Against undrawn balance (upto 90 days)
Against retention money (for supplies portion only) payable within one year from the date of shipment (upto 90 days)

Deferred Credit:

Deferred credit for the period beyond 180 days.

 BR + 6.00%

Export Credit Not Otherwise Specified (ECNOS):

Pre-shipment Credit

Post-shipment Credit

The above rates are subject to the condition that the floor rate shall not fall below 7% in those accounts where identified exporters are eligible for interest subvention of 2% or 3% in terms of extant guidelines on Rupee Export Subvention.

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