Union Bank cuts base rate by 15 bps

Union Bank of India has reduced its base rate by 15 basis points from 10.65 per cent to 10.5 per cent, according to a release filed with the Bombay Stock Exchange.

The revised rate is effective May 1, 2012, the release said.

With this reduction, the base rate has been effectively brought down by 25 bps in two stages: 10 bps from December 26, 2011 and 15 bps from May 1, 2012.

Deposit rates

The bank has also realigned deposit rates across maturities. While in the longer end, the deposit rates have been brought down by 25 to 45 bps; at the shorter end, it has been realigned upwards by 15 to 25 bps.

This change will come into force from April 27, 2012.

In December 2011, Union Bank had reduced its base rate marginally by 10 bps to 10.65 per cent.

Review of BPLR

Union Bank would also take up the review of the BPLR (Benchmark Prime Lending Rate) shortly.

It has also proposed to review the spread over base rates for suitable reduction in certain specific segments like Agriculture, MSME and Retail, which would also be announced shortly