State-run PNB interest rates on loans were cut by 75 bps, passing on the entire Repo rate cut by Reserve Bank of India (RBI) on Friday, a company release said.

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The benefit is being passed on to the borrowers on loans covered under External Benchmark Lending Rate (EBR) of Repo Linked Lending Rate (RLLR) in respect of Retail/ MSME portfolio with effect from 1 April 2020, the release said.

Further, the bank also reduced its MCLR (Marginal Cost of Funds based Lending Rate) rates by 30 bps across the tenor for better monetary transmission of policy rate cut benefit to the borrowers, the release said.

The rates shall be applicable for the amalgamated entity. The bank has also reduced its base rate by 15 bps from 9.05% to 8.90%. The banking regulator on Monday notified amalgamation of Oriental Bank of Commerce and United Bank of India with Punjab National Bank.

Bank has further reduced its term deposit rates in various maturities bucket with maximum rate of 5.80% for deposits maturing in 1 year and above, the release said.

On Friday, India's largest public sector bank the State Bank of India (SBI) had also cut rate by 75 bps of all loans linked to EBR as well as Repo Linked Lending rate (RLLR).

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The RBI announced reduction in key lending rates in response to the Covid-19 outbreak. The Monetary Policy Committee of the central bank in an unscheduled meet reduced the repo rate to 4.40 per cent from 5.15 per cent.