PNB cuts interest rates on non-resident deposits

Punjab National Bank (PNB), the country's second-largest public sector lender, has slashed interest rates on foreign currency non-resident deposit schemes for dollar, pound and euro effective October 1.

The interest rate on US dollar deposits has been reduced to 2.26 per cent for a maturity of 1-2 years from 2.33 per cent. For the maturity of 2-3 years, the rate has been kept unchanged at 2.35 per cent, PNB said in a statement.

For a tenure of 3-4 years, the interest rate is trimmed to 2.92 per cent from 2.99 per cent and on 4-5 years term deposit, the new rate is 3.35 per cent.

The fixed deposit for five years would now invite lower interest rate of 3.68 per cent against 3.79 per cent, it said.

On NRE term deposits, the applicable rate of interest form October 1 is 3.01 per cent for maturities of 1 year to less than 2 years while 3.10 per cent for maturities of 2 years to less than 3 years.

The interest rate on 3-5 year foreign deposit is 3.67 per cent.