Soon after the Reserve Bank of India slashed repo rate by 50 basis points, state-owned Punjab National Bank (PNB) announced a similar reduction in lending rate much to the cheer of its borrowers.

Other banks are expected to follow suit.

"Great News for Our Valued Customers! Punjab National Bank Makes Your EMIs More Affordable! Following the repo rate cut (6.00% - 5.50%), Punjab National Bank has reduced its RLLR by 50 bps, effective from June 9, 2025," PNB said in a post on X.

With the reduction in the benchmark repo-linked benchmark lending rates (RBLR), the home loan of the bank will start from 7.45% and vehicle loans from 7.8% per annum.

Earlier in the day, the Reserve Bank of India (RBI) cut interest rates by a larger-than-expected 50 basis points, and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.