PNB cuts BPLR by 50 basis points

The country’s second largest public sector lender Punjab National Bank (PNB) today informed the Bombay Stock Exchange (BSE) in a filing that it has reduced the benchmark prime lending rate (BPLR) by 50 basis points from 12.50%  to 12%, effective January 1, 2009.

The revised rates will be applicable in respect of all existing and new accounts for loans and advances linked with BPLR, bank said in the filing.

The bank said it has also decided to reduce deposit rate from 9.50% to 8.50% for deposits of one year to less than three years. Accordingly, interest rates in the time buckets having maturities of 46 days and above have also been reduced by 25 bps to 125 bps, effective January 1, 2009.

The Bank has reduced interest rates on various retail lending schemes such as floating-rate housing loans, car and education loans by 50 basis points. The interest rates on fixed-rate housing loans have been reduced up to 175 basis points.

The public lender has introduced a new Housing Loan scheme called "PNB Special Housing Loan Scheme" for new accounts from January 1, 2009 till June 30, 2009. Under this scheme interest at 8.5% will be charged under fixed housing loan up to Rs 5 lakh for maximum period up to 20 years and 9.25% interest for fixed rate housing loans of above Rs 5 lakh and up to Rs 20 lakhs for a maximum period up to 20 years. The interest rate on this scheme will be subjected to reset on July 1, 2014 for the scheme.