Union Bank of India cuts base rate by 25 bps to 10%

Mumbai-based public sector lender Union Bank of India has decided to reduce its base rate by 25 basis points to 10 per cent effective Monday.

After this reduction in the base rate, Union Bank of India’s home loan rate is 10 per cent and the car loan rate at 10.45 per cent.

Union Bank is the third public sector bank to reduce the base rate after Finance Minister P Chidambaram urged lenders to do so last week. More large banks like Punjab National Bank and Bank of Baroda are expected to follow.

Last week, Bangalore-based Canara Bank had cut the base rate by 30 bps to 9.95 per cent. Immediately after meeting with the finance minister Bank of India had announced a reduction in base rate by 25 basis points to 10 per cent.