Punjab National Bank (PNB), the country’s second largest PSU lender, on Friday cut deposit rates on longer maturities for amounts more than Rs. 1 crore and less than R10 crore.
Deposits for maturity of 271 days and less than one year will now fetch a rate of 8.50%, a cut of 25 bps. For terms of 46–90 days and 30–45 days, rates have been cut by 25 bps and now stand at at 7% and 6.25%, respectively. Short-term deposits of 7–14 days and 15–29 days will fetch 6% interest, up from 4% and 4.5%, respectively. The new rates will be effective from October 10.
The bank is leaving retail deposit rates unchanged at 9% for the maturity period of one year, so as to give a reasonable rate of return to depositors. However the bank may revise retail deposits at the end of the month.
SBI had last revised its term deposit rates in July when it cut bulk term deposit rates by 25 bps.