Government owned Punjab National Bank (PNB) cut interest rates on domestic term deposits of less than Rs 1 crores in maturity period of 5-10 years to 8.25 pct from 8.50 pct.
This follows a slew of other banks which have cut their deposit rates in recent times. The Reserve Bank of India it maybe recalled held interest rates earlier this month and coerced banks to cut their interest rates, following 2 successive repo rate cuts by the Reserve Bank of India (RBI). Banks however have been reluctant to cut interest rates on loans and deposits.
The stock of PNB was trading with gains of 1 per cent on the NSE.