 "United Bank of India hikes base rate by 25 basis points")
United Bank of India on Thursday announced a raise in its base rate or minimum lending rate by 25 basis points (bps). The rate hike will be effective from Thursday. “In the view of the current economic situation and change in the repo rate by the Reserve Bank of India (RBI), United Bank of India has increased its base rate from 10.25 per cent to 10.50 per cent. This revision will impact the loan accounts linked to base rate," the state-run lender said in a statement.
The bank also cut its interest rate on retail term deposits of one year and above by 25 bps. It will now offer 8.50% interest instead of 8.75% on such deposits.
In recent months, the Kolkata-based bank has been making the headlines for all the wrong reasons. The lender's net loss more than doubled, on a sequential basis, in October-December quarter. RBI had also ordered a forensic audit on the bank.
Pending the audit's completion, the loan sanctioning power was limited to Rs 10 crore. The audit report was given to the central bank a few days earlier. It pointed to a lax credit appraisal process, which led to loans becoming non-performing.
The bank also cut its interest rate on retail term deposits of one year and above by 25 bps. It will now offer 8.50% interest instead of 8.75% on such deposits.
In recent months, the Kolkata-based bank has been making the headlines for all the wrong reasons. The lender's net loss more than doubled, on a sequential basis, in October-December quarter. RBI had also ordered a forensic audit on the bank.
Pending the audit's completion, the loan sanctioning power was limited to Rs 10 crore. The audit report was given to the central bank a few days earlier. It pointed to a lax credit appraisal process, which led to loans becoming non-performing.