Lending Rate: Union Bank of India raises rate by 25 bps

MUMBAI: Union Bank of India said on Saturday it has raised its benchmark prime lending rate by 25 basis points to 14.5 per cent, effective July 25. RBI has raised key lending rate 10 times since March 2010 to tame high inflation, forcing banks to pass on some of the increase to customers. On Friday, Union Bank posted a 23 per cent fall in first quarter net profit that lagged forecast and said its net interest margins narrowed on higher costs.

Published in The Express Tribune, July 24^th, 2011.