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State-owned United Bank of India today slashed base rate or minimum lending rate by 0.25%.
It has been decided to reduce the base rate of the bank from 10.50% to 10.25% with effect from March 24, United Bank of India said in a filing on the BSE.
All new loans, including home and car loans, would become cheaper by 0.25% with reduction in base rate.
Shares of the United Bank of India was trading at Rs 28 per unit, up 3.70% on the BSE.
Earlier this month, another public sector lender Allahabad Bank, however, raised base rate by 0.05% to 10.20% from 10.25%.
In its Third Quarter Review of Monetary of Policy, the RBI in January raised the key repo rate to 8% in a bid to curb inflation.
The central bank's move was expected to translate into higher EMIs and push up borrowing costs for corporates.
