Public sector lender Union Bank of India has also announced a hike in lending rates by upto 50 bps.

The base rate of the bank has been raised to 10.75%, a 50 bps hike from the previous rates. The benchmark prime lending rate (BPLR) stands at an increase by 25 bps figuring to 14.50%.

The rate hike has been a succeeding step after the regulator Reserve Bank of India raised policy rates by 50 bps recently.

Most of the banks have raised their lending rates following the apex bank's step, although lending majors like SBI, ICICI Bank and Axis Bank are still to take a step in this regard.

The revised rates for Union Bank will come to effect from today, August 08, 2011.