State-owned Union Bank of India will cut lending rates by July, its Chairman and Managing Director M V Nair said here on Thursday. He added that there had been a 15.5 per cent growth on credit last year and Union Bank had set a target of 25 per cent for the current financial year, well above the central bank’s recommended 20 per cent.
The bank has already disbursed loans worth Rs 18,000 crore. Nair said that public sector banks have received 150 per cent more sanctions this year, but utilisation is low because demand has to pick up.
In the city to launch the bank’s enhanced mobile banking services, Nair said the bank’s electronic transactions have increased to 23 per cent from 6 per cent in the last year.