PNB announce cut in lending rate from Feb 1

Punjab National Bank country's second largest public sector lender has announced a cut in benchmark lending rate by 50 basis points to 11.50 per cent effective February 1. With this cut millions of home loan and auto loan aspirants will get respite.

During the announcement of the bank’s third quarter result PNB Chairman and Managing Director K C Chakrabarty told reporters, "We have decided to cut Prime Lending Rate (PLR) by 50 basis points beginning next month."

He informed bank has taken decision to cut interest rates on home, car, education as well as personal loans by up to 50 basis points. The new cut will be applicable from February 1.

He added after the cut the fixed rate housing loan would range from 9.25 per cent to 11 per cent in accordance to tenors and amounts.

He pointed out likewise the revised floating rate housing loans would range from 9 per cent to 10.25 per cent according to tenors and amounts.

He informed that the new revised interest rates on floating housing loan rate will be applicable both for existing and new accounts.

Chakrabarty remarked deposit rates will be reduced in between 25 to 100 basis points across various maturities effective next month.

He said, as a result after this reduction, the peak retail deposit rate will be reduced from 8.50 per cent in the time bucket of one year to less than 3 years to 8 per cent for one year to less than 5 years.