PNB to cut prime rate from June 1

State-run Punjab National Bank will cut its prime lending rate to 11 per cent effective June 1 from 11.25 per cent, its chairman S S Kohli told reporters on Monday.

State-run Punjab National Bank plans to return Rs 1.3 billion of equity to its majority shareholder, the government of India, its chairman S S Kohli told reporters on Monday.

The shares will be returned at face value, General Manager C P Swarnkar said.

Kohli also said the government may buy back more equity later.

"The details of the scheme are still being worked out. It will be related to the market price," he said.

The final price would probably be at a discount to the market, taking into account bad loan provisions and tax concessions, Swarnkar said.