PNB Cuts Interest Rate Up to 75 Bps On Domestic Term Deposits (Rs 3 Crore & Above) – Effective March 1, 2025

With effect from March 1, 2025, Punjab National Bank (PNB), the country's first Swadeshi bank, has changed the interest rates on domestic term deposits for deposits of Rs 3 crore and above. The highest rate drops of 0.75%, were observed in short-term deposits of 7-45 days, while the 46-90 day period also experienced slight rate cuts, from 0.15% to 0.35%. PNB, however, made no adjustments to medium- and long-term deposits that mature in 91 days to 10 years.

PNB FD Rates

On bulk deposits maturing in 7 days to 45 days, the bank has slashed interest rates by 75 bps from 6.00% to 5.25% and on those maturing in 46 days to 60 days, PNB has reduced interest rates from 6.40% to 6.25% representing a drop of 15 bps. PNB has reduced interest rates from 6.60% to 6.25% or a rate cut of 0.35% on tenure of 61 days to 90 days however the PSU lender has maintained the interest rate at 6.50% on 91 to 179 days tenure, PNB bulk FDs maturing in 180 days to 270 Days will continue to fetch an interest rate of 6.65% and those maturing in 271 days to 302 Days will fetch an interest rate of 6.75%.

The bank will continue to pay an interest rate of 7.00% on bulk deposits maturing in 303 days, while PNB will continue to give an interest rate of 6.75% on those maturing in 304 days to 1 year. In addition to maintaining interest rates at 6.70% for 506-day tenure and 6.80% for 507-day to 2-year duration, PNB will continue to give an interest rate of 7.25% for a one-year tenure and 6.80% for a one-year to 505-day tenure. PNB bulk fixed deposits with maturities of two to three years and three to twelve days will continue to yield interest rates of 6.50% and 6.25%, respectively.

The interest rate of 6.15% will still be offered by PNB on bulk deposits that mature in 1204 days, and 6.25% will still be offered on deposits that mature in 1205 days to 5 years. PNB will keep offering FDs due in 5 years until 1894 days at an interest rate of 5.60%, and those maturing in 1895 days at an interest rate of 5.45%. The interest rate for PNB bulk deposits that mature in 1896 days to 10 years will now be 5.60%.

Period	Existing Rates For Public w.e.f. 01.01.2025	Revised Rates For Public w.e.f. 01.03.2025
7 days to 14 days	6	5.25
15 days to 29 days	6	5.25
30 days to 45 days	6	5.25
46 days to 60 days	6.4	6.25
61 days to 90 days	6.6	6.25
91 to 179 days	6.5	6.5
180 days to 270 Days	6.65	6.65
271 days to 299 Days	6.75	6.75
300 Days	6.75	6.75
301 Days to 302Days	6.75	6.75
303Days **	7	7
304 Days to 1 Year	6.75	6.75
1 Year	7.25	7.25
1 Year to 399 Days	6.8	6.8
400 days	6.8	6.8
401 Days to 505 Days	6.8	6.8
506Days **	6.7	6.7
507 Days to 2 year	6.8	6.8
2 year to 3 years	6.5	6.5
3 year to 1203 days	6.25	6.25
1204 days**	6.15	6.15
1205 days to 5 years	6.25	6.25
5 years to 1894 days	5.6	5.6
1895 days**	5.45	5.45
1896 days to 10 years	5.6	5.6
Source: Bank Website

According to PNB, its current deposits grew by 2.0% year on year to Rs 70,018 crore in the December 2024 quarter, while it's CASA deposits grew by 2.7% year on year to Rs 5,62,156 crore. According to PNB, as of December 2024, its total term deposit has grown by 24.7% YoY to Rs 9,67,543 crore. There were 10,168 domestic branches and two international branches of PNB as of December 31, 2024 whereas 63.3% of the bank's branches are located in rural and semi-urban regions.