Mumbai: Falling in line with the leading public sector banks, Punjab National Bank on Monday announced reduction in Prime Lending Rate by 0.5% to 12.5%.
The rate has been reduced from existing level of 13% to 12.5%, which is effective from 1 March, PNB said in a communication to the Bombay Stock Exchange.
The reduction in PLR is likely to moderate lending rates linked with PLR, including housing (floating rate), corporate, car loan etc.
In addition, the bank has also selectively reduced its interest rates by 0.5% on loan, which are not linked to PLR such as housing loans above Rs 20 lakh where interest rate will be in the range of 9.5% to 10.5% (against the existing rates ranging from 10% to 11%), it said.
The interest rates in respect of loans granted for second house have also been reduced by 0.5%, it said.
PNB has also reduced rates of interest on car loans consumer loans (personal loans) by 0.5% to one per cent.
Last week, public sector banking giant State Bank of India had reduced the PLR by 0.25% to 12.25% while Bank of Baroda announced cutting the rate by 50 basis points to 12.75%.
At the same time, Bank of India and Union Bank also announced reduction in PLR by 0.5% to 12.75% on Monday.
Bangalore-based Canara Bank also cut PLR by 0.25% to 12.75%.