Public sector lender, UCO Bank has increased its benchmark prime lending rate (BPLR) by 25 basis points. The new rates have come into effect from yesterday, 9th August 2010.
The lender has also raised its deposit rates for several maturities with effect from 6th August.
"The new rates of interest for seven to 14 days deposit (Rs.15 lakh and above) is 2.50 percent, senior citizens will get 0.75 percent extra. Interest rates for one year and three years to less than five years, for an amount of less than Rs.15 lakh, have been increased to 6.75 percent and 7.25 percent respectively," the bank said.
Several banks have increased their lending rates as a means to push customers towards base rate system of lending.
Banks like Punjab National Bank, Corporation Bank, Bank of Baroda have raised their lending rates along with several others.