The public sector Punjab National Bank (PNB) on the day of the announcement in the policy rate of the Reserve Bank of India (RBI) has announced a 0.50 percent cut in interest rates on Friday. After this announcement, it will be cheaper to take other loans including car loan, home loan, personal loan from the bank. EMIs of existing customers will also be reduced. After this announcement, the benchmark repo-linked benchmark loan rates (RBLR) cut, the bank’s home loan will start from 7.45 percent while the vehicle loan will start from 7.8 percent per year.
EMI and more affordable
According to the news, this move of PNB will prove to be helpful for existing and new borrowers. Other banks are expected to make a similar announcement soon. PNB said in a post on X that good news for our valuable customers! Punjab National Bank has made your EMI more economical! After the repo rate reduction (6.00% – 5.50%), Punjab National Bank has cut 50 basis points in its RLLR effective since June 9, 2025.
Repo rate reduced to 5.5 percent
Earlier in the day today, the Reserve Bank of India cut interest rates by 50 basis points, and cash reserve ratio was unexpectedly reduced to provide more money to lend to banks to promote the economy. A six -member monetary policy committee headed by RBI Governor Sanjay Malhotra cast a vote to five to one to 5.5 percent to the benchmark repo or repo rate from 50 basis points to 5.5 percent.
CRR cut by 1 percent
The RBI also reduced it to 3 percent in cash reserved ratio (CRR) by cutting 100 basis points, which already added Rs 2.5 lakh crore to surplus liquidity in the banking system. With a cut on 6 June, the Reserve Bank has now cut a total of 100 basis points in interest rates in 2025, which started with a quarter points cut in February. The first cut after May 2020 – and in April there was another cut of the same size.
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