By IANS,
Mumbai : The government-run Union Bank of India Monday raised the base rate, the minimum rate at which banks lend, by 50 basis points (bps) to 9 percent, in line with other lenders.
“The revision is in alignment with the current rate scenario as also the increase in the cost of funds,” Union Bank of India said in a regulatory filing to the Bombay Stock Exchange (BSE) Monday.
The public sector lender last week hiked retail term deposit rates by 75 to 100 basis points on various maturity periods.
Union Bank of India has also increased its Benchmark Prime Lending Rate (BPLR) by 50 basis points to 13.25 percent.
Other lenders, including Punjab National Bank, Allahabad Bank, Indian Bank, Bank of India and Indian Overseas Bank, also raised their lending and deposit rates this month in view of the tighter monetary policy adopted by the Reserve Bank of India to tame inflation.