Punjab & Sind Bank cuts lending rate by 0.25%

State-owned Punjab & Sind Bank (PSB) today slashed its lending rate by 0.25%, in line with other lenders.

The bank has revised its base rate by 0.25% to 10.50% from from 10.75% per annum, PSB said in a BSE filing.

Base rate is the benchmark rate below which a bank cannot lend. With the reduction in the base rate, all kinds of loans would be cheaper by at least 0.25%.

The new rate would be effective from May 1.

Last week, PSB had trimmed its fixed deposit rates across various maturities in line with the market trend.

Following the Reserve Bank's decision to cut key interest rate by 0.5% to 8% in its annual credit policy last month, several banks including ICICI Bank, IDBI Bank and Punjab National Bank have reduced both lending and deposit rates.