With effect from today, PNB has cut down benchmark prime lending rate by 50 bps from 14 per cent to 13.50 per cent. The second largest public sector bank announced that the revised rate will be applicable to all existing and new accounts. Also, the bank has decided to pass on the benefit of the cut in the cash reserve ratio (CRR) and repo to its consumers even before deposit rates are cut.

 

Punjab National Bank (PNB), the second largest public sector bank was registered on May 19, 1894 under the Indian Companies Act. Then it had its office at Anarkali Bazaar in Lahore. Under its latest policy change, the bank has decided to reduce the peak rates of deposits from 10.5 per cent to 10 per cent. The decision would be effective from Dec 1, 2008.

 

Financial analysts are of opinion that consumers of housing loans, car loans and education loans of the bank would get benefit from the latest policy change. According to them the 50 basis point cut in PLR is in addition to 50 basis point discount given to them since Oct 16, 2008 as a part of festival bonanza. The said discount would continue unless the discount is withdrawn.