New Delhi, Apr 30 The Punjab National Bank on Thursday reduced its benchmark lending rate by 50 basis points to 11 percent.

The Benchmark Prime Lending Rate (BPLR) has been slashed from 11.5 per cent to 11 per cent effective tomorrow, the bank said in a statement.

The benefit of reduction in BPLR shall be applicable to all existing and new accounts linked with BPLR, wherever interest rates are charged at BPLR and above, it added.

Further, the bank has cut interest rate on personal loan by 50 basis points and floating home loan would become cheaper by 25 basis points.

The bank has also reduced its peak deposit rate by 50 basis points to 7.5 per cent.

The threshold limit under the PNB Special Housing Loan Scheme (Fixed) has been enhanced to Rs 50 lakh. Home loan is available at 9 per cent under the scheme for the limited period up to June 30.

Interest rate on Reverse Mortgage Scheme has also been reduced by 0.5 per cent. Similarly, the interest rates on educational loans (linked with BPLR) are also revised downward by 50 basis points, the statement said.

Last week, the Reserve Bank of India (RBI) had cut down short-term policy rates by a quarter percentage.

PNB has slashed down the rates considering the lower rate of inflation and also keeping the stance of the RBI, as announced in the Annual Policy Statement for financial year 2009-2010, indicating scope for reduction in both lending and deposit rates by banks. (ANI)