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Written by Adiban_Maran
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Friday, 13 April 2007 |
Union Bank of India (UBI) has raised its benchmark prime lending rate (BPLR) by 75 basis points. Now the fresh rate, valid retrospectively from March 11 will be 13.25%, versus 12.50.
Previously the bank increased its prime-lending rate by 50 basis points on February 19.
According to a bank release, “The bank has decided on this revision taking into consideration the recent hike in CRR and repo rate and its likely impact on cost of funds with resultant pressure on the spread.”
Though the increase will have an effect on advancements with floating interest rate structure linked to BPLR.
The bank added that the recent increase in BPLR would not be applicable to the bank’s subsisting housing loans, which have been approved on a floating rate basis.
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