Public sector lender, Union Bank of India has said that it is expecting a capital infusion worth Rs 1500 crore from the government as an aid to increase its business.

"We have requested government for financial support of Rs 1,500 crore and are awaiting response," Union Bank of India Executive Director S C Kalia said.

The government had said in June that capital worth Rs 6,211 crore would be infused into five public sector banks. Out of these five banks, Union Bank was allotted to receive Rs 111 crore.

The bank would also be raising interest rates on deposits in October.

"This (lending and deposit rates) we have to see when the Base Rate would be revisited in the month of October," Union Bank of India Chairman and Managing Director M V Nair said.

Deposit growth of the banking industry on annual basis is 14.5 per cent much lower than RBI's projection of 18 per cent.