New Delhi: Punjab National Bank (PNB) on Monday reduced its benchmark prime lending rate (BPLR) by 50 basis points from 12.5 per cent annually to 12 per cent from January 1.
PNB's revised BPLR shall be applicable for all existing and new accounts for loans and advances.
PNB also reduced its peak deposit rate from 9.5 per cent annually to 8.5 per cent for deposits of one year to less than three years. Accordingly, interest rates in the time periods having maturities of 46 days and above have also been reduced by 25 basis points to 125 basis points from January 1.
Additionally, PNB also reduced interest rates on various retail lending schemes like floating rate housing loans and car and education loans by 50 basis points. The interest rates on fixed rate housing loans have been reduced up to 175 basis points.
Further, the bank has introduced a new housing loan scheme—the PNB special housing loan scheme—for new accounts from January 1 till June 30.
Under this scheme, interest at 8.5 per cent will be charged under a fixed housing loan up to Rs 500,000 for up to 20 years, and 9.25 per cent interest for fixed rate housing loans of above Rs 500,000 to Rs.2 million (Rs 20 lakh) for a maximum period of 20 years.
The interest rate for the scheme will be reset July 1, 2014.
Bank of Baroda too reduced its BPLR by 75 basis points from existing 13.25 per cent to 12.5 per cent, also from January 1.
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