PNB RLLR Cut — Public sector lender Punjab National Bank has announced a significant relief for millions of customers. Just a day after the RBI reduced the repo rate by 25 basis points, PNB also revised its Repo Linked Lending Rate (RLLR) downward.
The bank informed the stock exchanges on 6 December (Saturday) that its RLLR has now been reduced from 8.35% to 8.10%. However, PNB clarified that there is no change in MCLR or Base Rate at the moment.
RBI Cuts Repo Rate to 5.25% — Full Details
The RBI’s Monetary Policy Committee on Friday unanimously decided to cut the repo rate by 25 basis points, bringing it down to 5.25%. Under the leadership of Governor Sanjay Malhotra, the six-member committee maintained a neutral stance and signalled a possibility of further reduction if inflation remains under control.
This marks the fourth consecutive repo rate cut since February 2025. While the RBI kept rates unchanged in August and October, the latest move reflects confidence that inflationary pressures are easing.
What PNB Announced After the Rate Cut?
PNB stated in its notification that, following the RBI’s decision, the bank has immediately revised its RLLR, making loans linked to this benchmark cheaper for borrowers.
The 25 bps reduction will directly affect customers with home loans on repo-linked floating interest rates.
Typically, RLLR includes a 3-month reset period. This means customers whose EMIs were last reset in October will begin receiving the benefit from January 2026.
Other Banks That Have Reduced Rates
PNB is not the only bank to cut rates after the RBI announcement. Bank of India and Indian Bank have already reduced their repo-linked lending rates. Indian Bank revised its RLLR from 8.20% to 7.95%, offering immediate relief to borrowers.
Since October 2019, the RBI has mandated that all retail loans must be linked to an external benchmark such as the repo rate. This is why any cut in the repo rate directly leads to cheaper home loan EMIs for customers.