Union Bank of India: First to cut base rate

Public Sector Bank, Union Bank of India has cut base rate by 0.10% to 10.65%. It  becoming the first bank to do. It is signalling loan interest rates may start softening.

RBI raised key interest rates 13 times since March 2010 to rein in high inflation.
 
Mr. M.V. Nair, CMD, Union Bank of India
said, " We have to see the signal that RBI gives but rates coming down will be very gradual. It may stand steady one or two quarters. Now,  Credit growth is not very high and interest rates have peaked so we thought it is a good time to pass on the benefit to customer"
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