The Punjab National Bank on Thursday has made announcement that it has slashed its Benchmark Prime Lending Rate (BPLR) by 50 basis points from 11.5% to 11%.

In a declaration, the leading public sector lender said that all subsisting as well as new accounts linked with BPLR will get reduction benefit, wherever interest rates are charged at BPLR and above.

PNB announced the cut after a week the central bank cut short-term policy rates by quarter percentage.

Moreover, PNB has cut interest rate on floating home loan by 25 basis points and personal loan would become cheaper by 50 basis points.

The bank has also cut its peak deposit rate by 50 basis points to 7.5%.

PNB has also enhanced the threshold limit under its Special Housing Loan Scheme (Fixed) to Rs 50 lakh.

Under the plan, home loan is available at 9% for the limited period up to June 30.

PNB has also slashed the interest rate on Reverse Mortgage Scheme by 0.5%.

Likewise, educational loans (linked with BPLR) will be cheaper by 50 basis points.

Previously, the bank announced cut in its BPLR on February 1 when it slashed the rate by 50 basis points to 11.5%.

PNB has cut the rates taking into account the lower inflation rate, and also keeping the stance of the RBI, as declared in the Annual Policy Statement for financial year
2009-2010, indicating scope for reduction in both lending and deposit rates by banks.