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Union Bank cuts interest rate for medium companies by up to 3.75%

PTI 06 Nov 2014, 13:06:44 PM IST

New Delhi: Union Bank of India (UBI), the state-owned lender, on Wednesday reduced interest rates for medium enterprises in the range of 200-375 basis points.

"The revised interest rate for borrowers from investment-grade medium enterprises is in the range of 12.25-13.75 per cent," UBI said.

The new rates are effective from November 3.

The revision in interest rates will also give fillip to Prime Minister Narendra Modi's 'Make in India' campaign - which was launched in September and is aimed at making the country a global manufacturing hub - a statement released by the bank said.

The Mumbai-based PSU lender had reported a 78 per cent spike in its net at Rs 371 crore for the quarter ended September 30, 2014. The sharp increase in profit was on account of lower provisioning and a Rs 140 crore income tax write-back.

Provisions during the quarter stood at Rs 785.41 crore as against Rs 936.75 crore in the same period of the previous financial year, while domestic advances of Union Bank rose 9.4 per cent to Rs 2,26,011 crore from Rs 2,06,690 crore in the year-ago period.

Chairman and Managing Director Arun Tiwari has attributed the good set of numbers to loan growth in retail, agriculture and MSME sectors.