Union Bank hikes rates on loans under BPLR

After increasing its base rate-the minimum limit beyond which the bank can not lend- last week, public sector Union Bank of India today hiked rates on older loans given under the BPLR system by 0.50% to 13.75%.

The lender had hiked its base rate by 0.50% to 9.5%, a statement issued by the bank said here.

The base rate system replaced the benchmark prime lending rate (BPLR) to make lending more transparent. However, some older loans given under the BPLR are yet to migrate on to the base rate system.

Many lenders, including IDBI Bank, Dena Bank, Bank of India, Union Bank of India, Indian Overseas Bank and Syndicate Bank, have upped their lending rates following the Reserve Bank's January 25 announcement to hike its key rates  by 0.25% each.

Meanwhile, UBI Bank also increased its interest offering for medium and long term deposits by up to 1.50% today, the release said.