Mumbai: After cutting its base rate or the minimum rate of lending last month, state-run Union Bank of India (UBI) on Saturday slashed interest rates on loans under the older prime lending rate (BPLR) by 0.50 percent.

Under the revised interest rates applicable from May 15, the bank has cut its benchmark prime lending rate to 15 percent, down 0.50 percent, it said.

"The revised BPLR shall be applicable to all existing accounts where the floating interest rate is linked to BPLR and those who have not opted to change to base rate," it said.

Shortly after the Reserve Bank made a surprise 50 bps cut in the key interest rate to 8 percent on April 17, UBI had cut rates on loans linked to the base rate regime – which came into effect from July 2010 -- by 0.15 percent to 10.50 percent.

Majority of banks, barring the State Bank, have cut their base rates following the policy review by up to 0.25 percent.


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