Kolkata-based United Bank of India (UBI) today announced 50 basis points cut in prime lending rate (PLR), and it will reduce the interest rate on deposits by 50 basis point by December.
UBI has also announced 25 basis points reduction in auto and housing loans. After the cut, the BPLR of the bank stands at 13.50 per cent, and the interest on deposits will be 10 per cent.
Speaking at a seminar organised by the Confederation of Indian Industries (CII), TM Bhasin, executive director, UBI said, the bank had assessed its additional capital requirement to be Rs 800 crore by March 2010, which it planned to raise through innovative perpetual debt instrument (IPDI).
Also, after the recent cut the the cash reserve ratio (CRR), about Rs 1,700 crore would be unlocked in the bank, which would enable it to earn an interest of Rs 150 crore over a period of time, said Bhasin.
The bank will submit its capital plan for the next five years to the Union finance ministry shortly. The bank would inform the ministry about the business, asset and deposit growth projections in the plan. The capital adequacy ratio (CAR) of the bank is 11.88 per cent.
"In yesterday's meeting, the finance minister had asked banks to give capital plan for the next five years," said Bhasin.
