Punjab National Bank (PNB) has announced a change in its Repo-Linked Lending Rate (RLLR) effective from April 1, 2025. The new RLLR will be 9.10%, a 0.10% increase from the previous rate of 9%. This decision comes as the banking system experiences liquidity tightness, and deposit growth fails to keep pace with credit growth.
The RLLR is a key component of PNB’s business strategy, adding a 0.10% premium to the rate. The bank’s marginal cost of funds-based lending rate (MCLR) and base rate remain unchanged.
The RLLR adjustment is part of PNB’s efforts to maintain a healthy balance between liquidity and credit. The bank’s decision is guided by the need to ensure that its lending rates are aligned with the current market conditions, which are characterized by tight liquidity.
The change in RLLR is expected to have a minimal impact on PNB’s customers, who will continue to benefit from the bank’s competitive interest rates. The decision is also seen as a sign of PNB’s commitment to maintaining a stable and sustainable business model, while continuing to support the country’s economic growth.
In related news, PNB has received a loan request from Kinet, a company seeking to produce Vande Bharat trains in Maharashtra, backed by Russia’s Sberbank Rossii. The loan is expected to be in the range of ₹500 crore and will be used to finance the production of Vande Bharat trains.