New Delhi, Oct. 31: Punjab National Bank (PNB) today cut its prime lending rate by 50 basis points to 13.5 per cent.

The revised rate, effective tomorrow, is for both new and existing borrowers. Chairman K.C. Chakrabarty said the bank would also cut its highest deposit rate by 50 basis points to 10 per cent from December 1.

PNB is the first public sector lender to cut prime lending rate following a series of monetary measures taken by the Reserve Bank of India to ease money supply.

Earlier this month, the bank had reduced the interest rate by half a percentage point on housing and car loans.

PNB today posted a 31 per cent growth rate in net profit at Rs 707 crore for the second quarter ended September 30 compared with Rs 538.4 crore net profit for the same period last year.

The bank said its net interest income for the second quarter jumped 33 per cent to Rs 1,712 crore from Rs 1,291.45 crore last year.