According to a recent press report Union Bank of India increased its base rate by 50 basis points to 10.75 per cent. Union Bank of India (UBI) is one of India’s largest state-owned banks that are listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank’s branches have been networked with its 1135 ATMs. It has representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China, and a branch in Hong Kong.
Reports said that the revision of the base rate was due to the current rate scenario as also the increase in the cost of funds. The bank had recently hiked its benchmark prime lending rate by 25 basis points to 14.50 per cent with effect from July 25.
Reports also said that most of the banks and non-banking finance companies have hiked lending rates following the 50 basis points increase in key short-term rates by the Reserve Bank of India in July. The hike in interest rates is likely to affect the new and existing loan borrowers. The bank offers home loan, personal loan, business loan, educational loan, reverse mortgage