New Delhi, June 7 (H.S.): After the Reserve Bank of India (RBI) cut the policy interest rate repo rate by 0.50 percent, the public sector Punjab National Bank (PNB) announced a reduction in interest rates by 50 basis points, i.e., 0.50 percent. This move by the bank will benefit both existing and new borrowers. The new rates will be effective from June 9, 2025.

Punjab National Bank stated in a post on ‘X’, Punjab National Bank has made customers’ EMIs more affordable. After the RBI’s repo rate cut of 0.50 percent (from 6.00 percent to 5.50 percent), PNB has reduced its RLLR by 50 bps, i.e., 0.50 percent, which will be effective from June 9, 2025.

With the reduction in PNB’s benchmark repo-linked benchmark lending rates (RBLR), the bank’s home loan will start at 7.45 percent, while vehicle loans will start at 7.8 percent per annum.It is noteworthy that the day before, the Reserve Bank of India (RBI) unexpectedly cut the policy interest rate repo rate by more than expected by 50 basis points, i.e., 0.50 percent.

Additionally, the central bank has unexpectedly reduced the cash reserve ratio (CRR) to promote the economy and provide more funds for banks to lend. Consequently, people expect similar announcements from other banks soon, in addition to PNB.

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Hindusthan Samachar / Jun Sarkar