Union Bank of India, a public sector lender has initiated lowering of lending rates. It is after a long time that any bank has cut interest rates. Though the base rate has been lowered by only 10 basis points but it will definitely inspire other lenders.
In a statement, the bank said, "Our asset liability committee, in its quarterly review of interest rates, has decided to bring down the base rate by 10 basis points from 10.75% to 10.65% with immediate effect."
There have been indications from RBI that interest rates are at apogee. However, it is likely to wait to slash the policy rates till the inflation rate is well under comfort zone.
The base rate of Union Bank of India has been brought down from 10.75% to 10.65%.