K C Chakrabarty, Chairman of state-owned Punjab National Bank informed that bank may consider on cutting its interest rates further in case inflation continues to fall.
He stated, “Last week, PNB cut its benchmark prime lending rate by 50 basis points to 11.5 per cent, which is the lowest among public sector banks”.
Inflation is indicating lower signals moreover the Reserve Bank of India monetary easing policy, will in turn make possible for banks to cut lending rates.
At present India’s headline inflation rate is a little over 5 per cent from a 13-year high of 12.91 per cent earlier in August. This moderating trend has impelled the RBI to cut its key policy rates.
Ever since October, the central bank has cut Repo Rate by 350 bps, Reverse Repo 200 bps and Cash Reserve Ratio 400 bps with an aim to boost liquidity and lift demand in the drooping economy.
Chakrabarty informed at present the bank has no plan to match State Bank of India’s special home loan scheme, in which it has put a freeze on the interest rate on new loans taken till April 30 at 8 per cent for one year.
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