Union Bank of India hikes base rate by 50 basis points

August 6th, 2011 - 5:09 pm ICT by IANS  

Mumbai, Aug 6 (IANS) Public sector lender Union Bank of India (UBI) Saturday said it has increased its base rate by 50 basis points following hike in key interest rates by the Reserve Bank of India (RBI).

“The bank has revised base rate by 50 bps from 10.25 percent to 10.75 percent per annum. The revised rate is effective from Aug 8, 2011,” it said in a regulatory filing.

Most lenders are expected to pass on to consumers the recent hike in policy rates by the RBI, which July 26 hiked key policy rates by 50 basis points in the 11th such exercise since January 2010 to tame inflation.

The repurchase rate, the interest the central bank levies on short-term borrowing by commercial banks, has been hiked to 8 percent from 7.5 percent and reverse repurchase rate, or interest paid on short-term lending, raised to 7 percent from 6.5 percent.

At the Bombay Stock Exchange the shares of the company were 1.61 percent up to trade at Rs.280.10.

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