Punjab National Bank cuts lending rates

January 30th, 2009 - 5:28 pm ICT by IANS  

Mumbai, Jan 30 (IANS) State-owned Punjab National Bank (PNB) Friday said it will reduce lending rates by 50 basis points (bps) to 11.5 percent from 12 percent from Feb 1.“This measure has been taken to ensure availability of credit to the existing and new borrowers at a lower rate,” the bank said in a regulatory statement.

Incidentally, the central Reserve Bank of India had indicated early this week that there was further scope of cutting lending rates. PNB had last revised the benchmark prime lending rate (BPLR) Jan 1 by 50 bps to 12 percent.

The apex bank has also decided to revise the retail deposit rates downwards by 25 to 100 bps across all the maturity buckets. With this reduction, the peak retail deposit rate would be reduced from 8.5 percent to 8 percent.

“The benefit of reduction of BPLR has been passed on to all existing and new accounts linked with BPLR under small and micro enterprises and agriculture,” the bank said.

“For other loans linked with BPLR, the full benefit has been passed on to all new and existing accounts wherever the interest rate are charged at BPLR and above.”

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