Mumbai: Public sector lender Union Bank of India on Saturday increased its benchmark prime lending rate (BPLR) by 0.50% to 13.25% on the back of hardening of interest rates across the economy.
“In view of the current micro-economic scenario and hardening of interest rates, UBI has decided to revise its BPLR by 50 basis points with effect from 20 December,” the bank said in a statement to the Bombay Stock Exchange (BSE).
The rate increase will apply to old borrowers who have not migrated to the new base rate system, which was introduced from 1 July this year to make lending rates more transparent.
Apart from the increase in rates on the lending side, the Mumbai-based bank also hiked its term deposit rates by up to 100 basis points, it said in the statement.
It has launched a special 700 days product carrying an interest rate of 8.60% while the interest rate on a one year deposit has been raised to 8% from 7.25% earlier, it added.