Punjab National Bank has decreased its base rate by 25 bps from 10.75% to 10.50% with effect from May 01, 2012.
The Bank has also reduced the Interest rate on term deposits of less than Rs 1 crore by 25 bps to 50 bps in select buckets w.e.f May 01, 2012.
On Wednesday it may be recalled that the state-owned IDBI Bank announced a cut of up to 0.5% in lending and deposit rates, a day after Reserve Bank reduced key short-term rates. While IDBI Bank lowered lending rate by 0.25%, it cut the fixed deposit rate by as much as 0.5%.
The new rates will be effective from April 20, IDBI Bank said in a statement.PNB was trading marginally lower by Rs 2 at 9.20 am. On Tuesday the RBI had cut repo rates by 50 basis points. Repo rates are rates at which the RBI lends to banks and a drop in these rates, generally tends to bring down interest rates.