UBI to hike interest rates in a week's time

New Delhi, Jul 27: State-owned Union Bank of India (UBI) today said it will hike interest rates on home loans and personal loans following a hike in repo and reverse repo rate by the Reserve Bank of India.

''Owing to pressure by the recent 25 bps hike in the RR and RRR by the Central Bank, we will hike interest rates on home loans and personal loans in a week's time,'' UBI Chairman and Managing Director M V Nair told reporters here.

However, he declined to comment on the percentage hike saying that a meeting will be held to decide on the issue.

On the expansion plans of the bank, the CMD said UBI will open 100 branches in 2006-07 within the country adding that the bank plans to open two branch offices in Doha and Hong Kong and two representative offices in Shangai and Dubai.

''We hope to get the clearance of the respective Central Banks in a week's time,'' Mr Nayar said, while launching UBI's Electronic Funds Transfer Facility (EFT) for exporters joining the ranks of State Bank of India, Punjab National Bank and Bank of India and private banks like ICICI, IDBI, UTI and HDFC.

The EFT facility, based on the module developed by the Directorate General of Foreign Trade (DGFT), will be implemented in 791 core banking branches across the country.

UNI