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India's second largest public sector lender, Punjab National Bank (PNB) on Thursday (April 30) brought down its prime lending rate by 50 basis points to 11 per cent. PNB has also revised its retail deposit rates by 25-100 basis points across all maturities. According to chairman and managing director of the bank, K.C. Chakrabarty, PNB has reduced the peak retail deposit rate for three years to less than five years to 7.5 percent.
The bank has slashed down interest rate on car, education, reverse mortgage and personal loans by 25-50 basis points. Informing about it, Chakrabarty stated that there has been 25 basis points reduction in floating rate on housing loan, which will now range between 8.75 percent and 10 percent according to the tenure and amount. The revised rates will come into effect from May 1.
The Reserve Bank of India has recently reduced short-term lending and borrowing rates by 25 basis points each. The central bank has urged all the banks of the country to reduce the lending rates to stimulate demand in the economy. Apart from PNB, other banks like Union Bank of India, UCO Bank and the Bank of Baroda are also likely to follow the same path.
