Punjab National Bank cuts fixed deposit rate by up to 0.3%

State-owned Punjab National Bank on Monday cut interest rates on fixed deposits of various maturities by up to 0.3%.

It has reduced interest rates on domestic term deposits by 0.05-0.3% in select maturities, PNB said in a statement. The new rates would be effective from October 5, it said.

The rate cut comes a day ahead of fourth bi-monthly monetary policy review to be announced by 6-member Monetary Policy Committee (MPC). Last week, the bank had reduced its marginal cost of funds based lending rates by 0.5% across all maturities.

For overnight tenor it will be 9.05%, for 3-months 9.2%, one year term 9.3%; three years 9.45% and that for five years the Marginal Cost of funds based Lending rate (MCLR)​ is fixed at 9.6%.