PNB reduces savings deposit rates to 2.9%

State-owned Punjab National Bank (PNB) has reduced savings deposit rates by 10 basis points to 2.90 per cent. This compares with deposit rates of 2.70 per cent and 2.75 per cent offered by State Bank of India (SBI) and Bank of Baroda (BOB), respectively.

The cut in the interest rate — effective from September 1 — will be applicable on existing as well as new savings fund accounts, the lender said.

Bank officials said the decision is partly driven by huge liquidity that the bank continues to manage and also correction in rates vis-a-vis peers, especially public sector banks. It has been offering 2.90 per cent to 5.25 per cent interest on term deposits with a period of 7 to 14 days and 5 to 10 years, respectively, from August 1. Deposit rates for senior citizens range from 3.40 per cent to 5.75 per cent.