Public sector lender Union Bank of India (UBI) today joined the over a dozen other banks and hiked its base rate by 50 basis points or 0.50 percent, following the recent tightening by the Reserve Bank to tame inflation which is hovering at 9.44 percent.
The bank has revised its base rate, the minimum lending rate, by 50 basis points to 10.75 percent, effective Monday.
However, the bank has only increased the lending rate under the old BPLR scheme by 25 bps to 14.50 percent.
More than a dozen banks have already hiked their interest rates following the monetary action by the RBI on July 26, and many more are likely to do so in the coming days as the cost of funds has gone up.
However, among the leading banks, the market leaders -- SBI, ICICI, HDFC Bank and Axis Bank are yet to revise their rates.