Union Bank raises BPLR by 0.50 per cent to 13.25 pc

"In view of the current micro-economic scenario and hardening of interest rates, UBI has decided to revise its BPLR by 50 basis points with effect from December 20," the bank said in a statement to the Bombay Stock Exchange.

The rate increase will apply to old borrowers who have not migrated to the new base rate system, which was introduced from July 1 this year to make lending rates more transparent.

Apart from the increase in rates on the lending side, the Mumbai-based bank also hiked its term deposit rates by up to 100 basis points, it said in the statement.
It has launched a special 700 days product carrying an interest rate of 8.60 per cent while the interest rate on a one year deposit has been raised to 8 per cent from 7.25 per cent earlier, it added.