Mumbai, June 26 (UNI) Union Bank of India today hiked its interest rates on term deposits by 0.25 per cent to one per cent across different maturities, effective from July one.
The Bank has taken this decision in view of the recent trends in the economy.
''Large segments of the public view deposits as an investment avenue, yielding safe and assured returns on their savings. To protect their interests, the Bank has decided to hike interest rates on deposits,'' Executive Director of the Bank T Y Prabhu said.
The interest rates on deposits were last revised by the Bank in the month of April, when it introduced a 400 days deposit scheme at nine per cent per annum.
In view of the hike in CRR and Repo rate and increase in interest rates on deposits, the Bank has also revised its Benchmark Prime Lending Rate (BPLR) upwards from 12.75 per cent to 13.25 per cent, effective from July one.
The Bank last reduced the BPLR by 50 basis points from 13.25 per cent to 12.75 per cent on February 21. In effect, the Bank has restored its BPLR to earlier level of 13.25 per cent.
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