Public sector lender, Union Bank of India has increased its benchmark prime lending rate (BPLR) by as much as 50 basis points. The BPLR of the bank now stands at 13.25%.

"In view of the current micro-economic scenario and hardening of interest rates, UBI has decided to revise its BPLR by 50 basis points with effect from December 20," said the bank.

The rise in BPLR will be applicable to the existing customers of the bank who have opted to continue with this system of lending. For all new customer, it is base rate which has been made the new benchmark for lending since July 1, 2010.

The bank has also hiked fixed deposit rates across different maturities by as much as 100 maturities.

A special 700 day deposit has been introduced by the lender which would be fetching the depositor an interest of 8.6%. The interest on deposit of 1 year maturity has been increased to 8% from 7.25% earlier.