By IANS,
New Delhi : Public sector lender Union Bank of India said Friday it will increase its base rate by 50 basis points (bps) to 8.5 percent and deposit rates by 25 basis points on various categories from Oct 18.
“In view of the recent macroeconomic scenario, hardening interest rates and RBI’s policy stance, the bank has decided to revise its base rates and and also interest on retail term deposits,” the bank said in a statement.
The bank will raise interest rate by 25 basis points to 7.25 percent for the term deposits from 1 year to 3 years maturity period. The interest rate on term deposits with a maturity of more than 3 years will be raised to 7.50 percent from the existing 7.25 percent.
The bank has also raised the rate on retail deposits with a maturity of 10 years to 8 percent.
Most state-run lenders, including Punjab National Bank, Allahabad Bank, Indian Bank, Indian Overseas Bank and IDBI, have increased their lending rates following the Reserve Bank of India’s tightening of monetary policy.