Punjab National Bank sets base rate at 8 pct


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(Reuters) - Punjab National Bank(PNBK.BO) said on Tuesday its board has fixed the base rate for loans at 8 percent, as part of a new rule that requires banks to set their minimum lending rates.

The base rate is effective from July 1, the lender said in a statement to the stock exchange.

Earlier in the day, State Bank of India, the nation's largest bank said it has set its base rate at 7.5 percent.

The Reserve Bank of India introduced the new lending rate system or the base rate to ensure that larger borrowers do not bargain for cheaper rates from banks, distorting their asset liability management.