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Union Bank raises base rate by 0.5% to
New Delhi, 04
Union Bank of India raised its minimum rate of lending, or the
base rate, by 0.5 percent to 9.5 percent, in line with
The city-headquartered bank's increase in base rate will be
effective tomorrow, a bank statement said here.
The lender's peers, including Dena Bank, Bank of India, Indian
Overseas Bank and Indian Bank, had earlier this week upped
their base rate following the RBI's January 25 announcement to
hike its key rates - the repo, at which it lends and the
reverse repo, at which it collects extra cash, by 0.25 percent
Union Bank also revised its interest rates on term deposits by
up to 1.50 percent on certain maturities. Under the new rate
structure, a five-year deposit will fetch a an interest of 9
percent per annum, up from the earlier 7.5 percent, the
Meanwhile, private sector Kotak Mahindra Bank also increased
its interest rates on deposits by up to 0.50 percent depending
on maturities in both its baskets - one under Rs 15 lakh and
other in the Rs 15 lakh to Rs 1 crore range.
A deposit of under 46-90 days under Rs 15 lakh will earn an
interest of 5.5 percent per annum as against the earlier 5
percent, the bank said in a statement here.