Union Bank of India raised its benchmark prime lending rate (BPLR) by 50 basis points (bps) to 13.25 per cent today. Indian Overseas Bank also revised lending rates upwards on the back of hardening of interest rates across the economy. It increased its BPLR by 25 bps to 13.25 per cent.
“In view of the current micro-economic scenario and the hardening of interest rates, Union Bank of India has decided to revise its BPLR by 50 bps, with effect from December 20,” the bank said in a statement to the Bombay Stock Exchange.
The increase will apply to old borrowers who have not migrated to the new base rate system, which was introduced from July 1 to make lending rates more transparent.
Union Bank also raised its term deposit rates by up to 100 bps and launched a 700-day product, offering an interest rate of 8.6 per cent.
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