PNB Cuts Fixed Deposit Rate by 0.25 per cent on Select Maturities

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    New Delhi, Jun 3 (PTI) State-owned Punjab National Bank (PNB) today slashed interest rate on fixed deposits by 0.25 per cent on select maturities, a move which could be seen as precursor to a cut in lending rate.

    The reduction will be effective from June 8, PNB said in a statement. The decision to cut interest rate on fixed deposits comes a day after RBI reduced key policy rate.

    PNB Cuts Fixed Deposit Rate by 0.25 per cent on Select Maturities

    As part of its second bi-monthly monetary policy review, RBI cut the repo rate (short-term lending rate) from 7.5 per cent to 7.25, but left other policy tools like cash reserve ratio unchanged at 4 per cent and Statutory Liquidity Ratio (SLR) at 21.5 per cent.

    Following policy action, several banks, including market leader State Bank of India reduced its base rate or minimum lending rate to 9.70 per cent from 9.85 per cent effective June 8.

    Another state-owned Allahabad Bank cut base rate 0.30 per cent to 9.95 per cent, while Dena Bank, Punjab & Sind Bank reduced their base rate by and 0.25 per cent each.

    Dena Bank and Punjab & Sind Bank lowered their base rate to 10 per cent. With the reduction, all loans linked to the base rate will come down proportionately.

    IDBI Bank, however, has reduced bulk deposit rate, a move which is a precursor to a cut in lending rate. Other banks are likely to follow suit in the next few days. 

    PTI

    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more