Falling in line with the leading public sector banks, Punjab National Bank on Monday announced reduction on the benchmark prime lending rate (PLR) by 50 basis points (bps) from the existing level of 13% per annum to 12.50% per annum and will be effective from March 1, 2008, 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.
Further the bank has also reduced its interest rates by 50 basis points on loan, which are not linked to BPLR 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%-11%).
In addition to this the interest rates in respect of loans granted for the second house have also been reduced by 50 basis points. The bank has also reduced rates of interest on car loans consumer loans (personal loans) by 0.5% i.e. by 50 bps and 100 bps respectively.
The net profit of the bank for the nine months ended December 2007 amounted to Rs 1505.01 Cr, as compared to Rs 1302.37 Cr during the nine months ended December 2006, registering a y-o-y growth of 15.6%.
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%.