United Bank of India to link retail loan rate with repo rate; to lower MCLR

After State Bank of India, Kolkata-based United Bank of India is planning to link retail loan lending rates with the repo rate.

According to Ashok Kumar Pradhan, managing director and chief executive officer, United Bank of India, the move to link the two rates is aimed at improving rate transmission.

This apart, the bank is also planning to reduce MCLR by a “substantial percentage” in the next few days, he said.

Few months back, SBI had linked savings account deposits and short-term loans with the repo rate. 

However, United Bank of India, as of now, is not planning to link repo rate with savings