United Bank of India raises base rate by 35 bps

KOLKATA: United Bank of India or UBI has raised lending rates by 35 basis points (bps) effective from August 3, lower than what other banks did.

A majority of banks including Allahabad Bank and Bank of Baroda have raised base rate by 50 bps following Reserve Bank of India's decision to make repo rate dearer by same extent. UBI said it has increased both the base rate and benchmark prime lending rate by 35 bps each. The bank's new base rate will be 10.60% and BPLR will be 14.85%.

Accordingly, all its floating rate loans will be dearer from August 3. Loans taken from July 1, 2010 are linked to base rate while BPLR is linked to loans and advances sanctioned up to June 30, 2010. Borrowers who opted for fixed rate loans will not be impacted by the latest decision as their contracted rates will remain unchanged.

Source: EconomicTimes