PNB, IDBI cut lending rate by 0.25 per cent

Punjab National Bank (PNB) and IDBI Bank on Wednesday cut their base rates by 0.25 per cent to 10 per cent, which will lead to lower EMIs for their customers.

PNB has revised downwards the base rate or minimum lending rate to 10 per cent from 10.25 per cent, effective Thursday. The new base rate of IDBI Bank would be effective from May 11.

All loans linked to base rate of both the banks will now come down by at least 0.25 per cent.

“The reduction in interest rate is expected to positively impact loan growth; both in the retail consumer segment, as also revitalise fixed capital formation through higher corporate sector lending, thereby supporting the growth impulses in the economy,” IDBI Bank said in a statement.

The bank has also decided to reduce the retail term deposit rates in select bucketsby 0.10-0.25 per cent with effect from May 11.

The country’s largest lender, SBI, had reduced its base rate by 0.15 per cent to 9.85 per cent, effective April 10.

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Banks such as SBI, ICICI Bank, HDFC Bank and Axis Bank had cut lending rates by up to 0.25 per cent after RBI Governor Raghuram Rajan’s tough talk with bankers.