Union Bank of India cuts prime lending rate by 50 bps

Mumbai, Nov 3 (UNI) State-run Union Bank of India has cut its prime lending rate by 50 basis points to 13.5 per cent with immediate effect, a senior official said.

''In the first sign of easing of the interest rates, Bank had announced a downward revision of interest rate on Housing Loan Portfolio by 50 bps effective from October 21. We expect the interest rates to soften after the measures taken by the Reserve Bank of India and taking into account the liquidity conditions,'' Bank's Executive Director T Y Prabhu said in a release here today.

On Saturday, the central bank had cut banks' cash reserve requirements by 100 basis points to 5.5 per cent, thereby releasing 400 billion rupees into the banking system.

UNI AR SSS AG1405