Union Bank of India hikes lending rate to 10 pct

Union Bank of India

Mumbai: Public sector lender Union Bank of India united the rate hike bandwagon by raising its center rate, the most minuscule lending rate, by 50 basis points to 10 apiece cent.

This comes inside days of the Reserve Bank announcing an increase in intensity in its short-term lending and stack savings tax to tackle inflation.

"Arising barred of increasing consequence rate scenario, and due to senior Benchmark Policy Rates of RBI as well as increasing cost of deposits, Union Bank of India has revised Base Rate by 50 basis points from 9.5 apiece cent to 10 apiece cent", the stack thought in a filing to the Bombay Stock Exchange.

The revised tax will be successful from May 7, it added. The stack has besides increased its Benchmark Prime Lending Rate (BPLR) from 13.75 apiece cent to 14.25 apiece cent with effect from Saturday. The Base Rate organization replaced the BPLR organization with effect from July 1, 2010.