The performance of Direct Torque Controlled (DTC) Permanent Magnet Synchronous Motor (PMSM) is severely hampered by high Total Harmonic Distortion (THD) in motor current, especially under low-speed operations. Current THD problems show up as torque ripple, elevated losses, temperature rise, low power factor, and shorter motor lifetime. In DTC, the effects of high THD are magnified, necessitating an indepth study of the challenges and its mitigating techniques. In this paper, novel sliding bands are proposed for torque and flux hysteresis controllers to improve the current THD with a special focus on low-speed region. The proposed DTC schemes offer smooth low-speed operation with only a marginal increase in switching frequency. Even though the low-speed region is the targeted operating region, a significant THD reduction is seen over the whole operating region, with the added benefit of torque ripple and flux ripple reduction. The effectiveness of the proposed scheme is analytically and experimentally verified on a 1.07 kW PMSM drive. The proposed schemes exhibit better performance in comparison with the conventional methods, especially under low-speed regions, and significantly improves the low-speed performance.