Punjab National Bank, a leading public sector lender, has decided to reduce the Benchmark Prime Lending Rate (BPLR) by 50 bps from 14% to 13.50% w. e. f. November 01, 2008.

The bank stated in the release that the revised BPLR shall be applicable in respect of all existing and new accounts linked with BPLR where rates are charged at BPLR and above.

In addition, the interest rates on Housing Loans, Car Loans and Education Loans which were reduced w. e. f October 16, 2008 as a part of festival bonanza will continue at the reduced rates.

Further, the Bank has decided to reduce the peak rates of deposits from 10.5% to 10%. The effective date for the reduced rate shall be from December 01, 2008.

The bank has posted a net profit of Rs 707.09 crore during the second quarter ended September 30, 2008 as compared to Rs 538.48 crore in the same quarter in 2007.