PNB Cuts Repo-Linked Lending Rate To 8.35%
The marginal cost of lending rate and base rate will remain unchanged, says Punjab National Bank.
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Punjab National Bank revised its repo-linked lending rate from 8.85% to 8.35% on Friday after the RBI cut the repo rate by 50 basis points to 5.5%.
"Upon decrease in Repo rate by RBI on June 6, 2025. Bank has revised Repo Linked Lending Rate from 8.85% (including basic spread of 20 bps) to 8.35% (including basic spread of 20 bps) with effect from June 9, 2025," according to an exchange filing.
The marginal cost of lending rate and base rate will remain unchanged, PNB added.
The Reserve Bank of India's monetary policy committee, led by Governor Sanjay Malhotra, reduced the key lending rate. This reduction aims to stimulate economic activity by making borrowing cheaper for businesses and consumers.
It also announced a reduction in the Cash Reserve Ratio by 100 basis points, lowering it from 4% to 3%. This cut will be implemented in four staggered stages and is expected to release primary liquidity of Rs 2.5 lakh crore into the banking system.
The RBI has shifted its policy stance from 'accommodative' to 'neutral'. This change indicates a more balanced approach, suggesting that future rate cuts or hikes will be data-driven and dependent on evolving economic conditions.
Shares of PNB closed 1.06% higher at Rs 110.18 apiece on the NSE, compared to a 1.02% rise in the benchmark Nifty. The stock has fallen 11.07% in the last 12 months and risen 7.2% on a year-to-date basis.
Out of the 20 analysts tracking the company, 11 have a 'buy' rating on the stock, four recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 1.4%.
