Union Bank raises interest rates

December 18th, 2010 - 6:35 pm ICT by IANS  

Mumbai, Dec 18 (IANS) The government-run Union Bank of India will raise lending and deposit rates by up to 100 basis points effective Monday. “In view of the current micro-economic scenario and hardening of interest rates, Union Bank of India has decided to revise its BPLR (Benchmark Prime Lending Rate) by 50 basis points from 12.75 percent to 13.25 percent effective Dec 20,” the bank said in a regulatory filing to the Bombay Stock Exchange (BSE) Saturday.

The bank has raised retail term deposit rates by 75 to 100 basis points on various maturity periods.

Interest rates on term deposit of nine months maturity period will be raised to 7.25 percent from the existing 6.25 percent.

Term deposit of one year maturity will now earn 8 percent annual interest as against the existing rates of 7.25 percent.

Interest rates on term deposit of 6 months maturity period will be raised to 7 percent from 6.25 percent and on 91 days maturity period to 6 percent from 5.5 percent.

Union Bank of India has also introduced a special term deposit product of 700 days maturity period. It will earn an annual interest of 8.6 percent.

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