Punjab National Bank Revises Repo-Linked Lending Rate To 8.85%
The announcement came hours after the RBI's MPC slashed the benchmark lending rates.
Punjab National Bank on Wednesday announced that it has revised its repo-linked lending rate to 8.85% from 9.10%. This revision will come into effect from April 10, an exchange filing stated.
The state-run lender added that the existing marginal cost of funds-based lending rate and base rate remain unchanged.
The announcement came hours after the Reserve Bank of India's Monetary Policy Committee slashed the benchmark lending rate by 25 basis points to 6%. This marked the second quarter-of-a-percentage point rate cut announced by the MPC in 2025 so far.
The rate-setting panel also changed its outlook from neutral to accommodative, which suggests that more rate cuts could be on the cards in the period ahead.
Following the rate cut announcement, a number of Indian banks reduced their repo-linked lending rates. Indian Bank slashed the rate by 35 basis points to 8.7%, whereas Bank of India reduced it by 25 basis points to 8.85%. UCO Bank decreased the rate to 8.8%.
Before the reducing in repo-linked lending rates was announced, shares of Punjab National Bank on Wednesday closed 1.24% lower at Rs 95.72 apiece on the BSE, compared to a 0.51% decline in the benchmark Sensex.
