New Delhi, Oct. 15 (PTI): Punjab National Bank (PNB) has cut by 50 basis points its interest rate on housing, car and educational loans.

The new rates will take effect from tomorrow, and PNB becomes the first bank to offer relief to customers amid the series of liquidity injection measures by the RBI and the government.

PNB chairman and managing director K.C. Chakrabarty said the step was taken to ensure credit to borrowers at a lower rate during the festive season.

The decision to cut lending rates came a day after the bank increased deposit rates by 25-75 basis points in various time slabs with a peak rate of 10.50 per cent.