The permanent magnet and its manufacturing method

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A permanent magnet of rare earth-iron-boron plastic deformation alloy wherein contained crystal grains have a specified average grain diameter and which has extremely low oxygen and carbon contents and is excellent in magnetic properties; and a process for producing the same. This permanent magnet comprises a plastic deformation alloy which has a composition comprising 11.3 to 16.5 atomic % of R consisting of at least one member of rare earth metal elements including Y, 4.7 to 7.4 atomic % of B and the remainder of M containing Fe, whose oxygen and carbon contents are 1500 ppm or less and 300 ppm or less, respectively, and wherein contained crystal grains have an average grain diameter of 0.3 to 10 mum.