Union Bank slashes interest rates for medium enterprises by up to 3.75 %

Mumbai: State-run lender Union Bank of India today reduced interest rates for medium enterprises in the range of 200-375 basis points.

The revision will also give fillip to Prime Minister Narendra Modi’s ‘Make in India’ campaign, a bank release said.

The government’s ambitious campaign, launched in September, is aimed at making the country a global
manufacturing hub.

[caption id=“attachment_107418” align=“alignleft” width=“640”]  Reuters image[/caption]“The revised interest rate for borrowers from investment-grade medium enterprises is in the range of 12.25-13.75 per cent,” the bank said.

The new rates are effective from 3 November.

The city-based bank had reported a 78 per cent spike in its net at Rs 371 crore in the September quarter. The sharp increase in the profit was on account of lower provisioning and a Rs 140 crore income tax write-back.

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Provisions during the quarter stood at Rs 785.41 crore as against Rs 936.75 crore in the same period last year. Its domestic advances rose 9.4 per cent to Rs 2,26,011 crore from Rs 2,06,690 crore year ago.

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

PTI