Punjab National Bank Slashes Lending Rates Following RBI's Bold Cut
Punjab National Bank has reduced its lending rates by up to 50 basis points after the Reserve Bank of India cut interest rates by 50 basis points. This move aims to benefit existing and new borrowers. The central bank's decision also involved reducing the cash reserve ratio to boost the economy.
- Country:
- India
In a move poised to benefit both new and existing borrowers, Punjab National Bank (PNB) announced a reduction in its lending rates following the Reserve Bank of India's (RBI) surprising 50 basis points cut in interest rates.
State-owned PNB's announcement comes on the heels of RBI's decision to lower the repo rate, aiming to make loans more affordable and stimulate economic growth. Effective June 9, 2025, PNB's home and vehicle loans start at 7.45% and 7.8% per annum, respectively.
RBI's monetary policy committee, led by Governor Sanjay Malhotra, voted predominantly in favor of the rate cut, also slashing the cash reserve ratio by 100 basis points. This is part of a larger trend, with 100 basis points cut so far in 2025, underlying a shift to a 'neutral' monetary policy stance.
(With inputs from agencies.)
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