Union Bank of India, became the latest amongst a slew of public sector banks that have hiked their prime lending rates (PLRs) in the last three weeks.The bank hiked its benchmark PLR by 0.25% from 11.25% to 11.50%. Its home lending rates too have been hiked by 0.25% while interest rates on deposits have been left untouched.The decision to effect a hike in its PLR was taken at the bank's board meeting held here on Saturday."The asset and liability committee (ALCO) of the bank had pointed to the need of raising the PLR looking at the pressure on the cost of funds. The PLR has been appropriately raised by 0.25% after our board's approval on August 12," the bank's chairman and managing director, M V Nair said.The revised PLR has come into effect from the same day.On keeping its interest rates on deposits unchanged, the bank's Chairman said that the bank had launched a month-long deposit mobilisation scheme, 'Union Double', in June which had been very successful."Through the Union Double scheme we mobilised deposits of Rs 1,500 crore," he said.Notably, the deposits of a duration of eight years, nine months, will earn an interest of eight per cent for customers.Meanwhile, Dena Bank, which was expected to take a call on its rates over the weekend is yet to finalise its revision, sources said.
