Union Bank raises lending rate by 50 basis points to 9%

In line with other banks, Union Bank also raised base rate to 9 percent today, which is an increase of 50 basis points from the previous base rate.Union bank informed the Bombay Stock Exchange today that this revision has been made in the context of the current rate scenario and the cost of funding.Benchmark prime lending rate has been introduced in July, 2010 to bring more transparency in the base rate formulation by the Reserve Bank of India, and it is the lowest rate at which bank beyond which banks cannot offer any loans to any consumer.All the loans provided by the Union bank, including housing, auto and corporate loans will go dearer by 50 basis points for new customers with the increase in the base rate.Many banks including Allahabad bank, Dena bank, IDBI bank, Indian Overseas bank, Indian bank, bank of India and Punjab national bank have already raised their base rate.