On Thursday the state owned Panjab National Bank reduced interest rate on fixed deposit by 0.25% on select maturities.

In a statement PNB said ,”The rate of interest on fixed deposit in between one to five years has been reduced to 8.5 per cent from 8.75 per cent.”

“The revised rate would be effective from April 23”, it said.

During the last week, Many banks Including State Bank of India (SBI), HDFC Bank and Axis Bank cut lending rates by up to 0.25 percent after the Reserve Bank of India (RBI) Governor Raghuram Rajan’s tough talk with bankers on the issue.

Whereas PNB did not cut the lending rate despite several banks has lowered it.