New Delhi: State-owned Punjab National Bank on Tuesday reduced interest rate on fixed deposit by up to 0.25 percent 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 percent from 7.75 percent 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 percent, while 2-5 years, it has been reduced by 0.25 percent to 8 percent.
On June 2 policy, RBI reduced the key interest rate by 0.25 percent.
The central bank cut the repo rate (short-term lending rate) from 7.5 percent to 7.25, but left all other policy tools like cash reserve requirement unchanged at 4 percent and Statutory Liquidity Ratio (SLR) at 21.5 percent.
PNB had last reduced its interest rate on fixed deposit by 0.25 percent in April. The rate of interest on fixed deposit in between one to five years was reduced to 8.5 percent from 8.75 percent.
Subsequently, it reduced its base rate or minimum lending rate by 0.25 percent in May in line with market competition.
The bank has revised downwards the base rate to 10 percent from 10.25 percent, effective May 7.
