Union Bank of India reduces lending rates by 75 bps in line with RBI cut

State-owned Union Bank of India (UBI) on Monday reduced its lending rates linked to external benchmark by 75 basis points (bps) to 7.20 per cent, in line with the Reserve Bank of India's (RBI) recent repo rate cut.

The new rate will be applicable for all floating-rate personal or retail loans (such as housing and automobiles) and floating-rate loans to micro, small and medium enterprises, according to an official statement.

It will also be applicable for customers of Andhra Bank and Corporation Bank which will be merged into Union Bank of India from Wednesday, it said.

UBI's asset liability committee took the decision at its meeting on Monday, the statement said.

The move comes within three days of a 0.75 per cent cut in the repo rate by the RBI and similar moves by peers, including State Bank of India and Bank of India.