PNB cuts rate on fixed deposit by up to 0.25 per cent on select maturities

State-owned Punjab National Bank on Tuesday reduced interest rate on fixed deposit by up to 0.25 per cent on select maturities.

"The bank has reduced interest rates on domestic term deposits in select maturity buckets and the revised rates would be effective from June 26", PNB said in a statement.

The bank has slashed the interest rate by 0.25 per cent from 7.75 per cent to 7.50 on term deposits with 180 days to one year tenure.

For 1-2 years tenure, the interest rate has been reduced by 0.15 per cent, while 2-5 years, it has been reduced by 0.25 per cent to 8 per cent.

On June 2 policy, RBI reduced the key interest rate by 0.25 per cent.

The central bank cut the repo rate (short-term lending rate) from 7.5 per cent to 7.25, but left all other policy tools like cash reserve requirement unchanged at 4 per cent and Statutory Liquidity Ratio (SLR) at 21.5 per cent.

PNB had last reduced its interest rate on fixed deposit by 0.25 per cent in April. The rate of interest on fixed deposit in between one to five years was reduced to 8.5 per cent from 8.75 per cent.

Subsequently, it reduced its base rate or minimum lending rate by 0.25 per cent in May in line with market competition.

The bank has revised downwards the base rate to 10 per cent from 10.25 per cent, effective May 7.