Punjab & Sind Bank cuts lending rate by 0.26%

Punjab & Sind Bank on Thursday announced a cut of 0.26 per cent in minimum lending rate to 9.99 per cent, a move which will lower EMIs.

The bank has reduced its base rate to 9.99 per cent from 10.25 per cent, Punjab & Sind Bank said in a statement.

All loans linked to base rate would become cheaper by at least 0.25 per cent. Base rate is the minimum lending rate below which banks cannot lend. The new rate would be effective from August 1, it added.

The change in the base rate shall immensely benefit the borrowing clientele of the bank, Punjab & Sind Bank Chairman and Managing Director D P Singh said.

Pursuant to decrease in base rate of the bank, the EMI on housing loans has come down to Rs 877 per lakh for a loan of 30 years and for auto loans the EMI has dropped to Rs 1686 per lakh for a loan of 7 years, he said.

Following Finance Minister P Chidambaram’s advice earlier this month, some banks, including Canara Bank, Union Bank of India and Bank of India reduced base rate by up to 0.3 per cent.

During the meeting with heads of public sector banks, the finance minister had asked banks to consider reducing lending rates to stimulate credit growth.

“We have advised banks to take a look at the base rate.The base rate of SBI is 9.7 per cent. The average of the base rate of other banks is 10.2 or 10.25,” he had said.

A cut in the base rate would be a powerful booster for the economy and a powerful stimulus to credit growth, he had said.

Source: thehindubusinessline