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India's PNB cuts prime lending rate to 11.5pct

NEW DELHI: India's Punjab National Bank (PNB) has cut its prime lending rate (PLR) to 11.5 percent from 12 percent after the country's central bank announced interest rate cuts in early April, Press Trust of India (PTI) said on Sunday.

"The revised interest rates to be effective from tomorrow (Monday) have been done in line with the policy changes announced by the Reserve Bank of India," PTI quoted the bank's executive director, K.R. Chabria, as saying in a statement.

The news agency said the bank has slashed its PLR as well as its prime term lending rate (PTLR) by 0.5 per cent to 11.5 per cent from the present level of 12 per cent.

Earlier this month, the Reserve Bank reduced the bank rate, at which the central bank lends to commercial banks and primary dealers, to 7.0 percent from 8.0 percent.

The central bank also cut the cash reserve ratio to eight percent from nine in two stages of 0.5 percentage point each, effective from April 8 and April 22.

PTI said Punjab National Bank had also revised interest rates on domestic and non-resident term deposits.

It said the revised rates for domestic term deposits are five percent for 15 to 45 days and the interest rate for a period between one to two years is eight per cent.

Interest on non-resident external deposits is seven per cent for six months to less than one year, 8.5 per cent for one year to less than two years and 10 per cent for three years and above, the news agency said. -Reuters