Date:15/03/2006 URL: http://www.thehindubusinessline.com/2006/03/15/stories/2006031504570100.htm

Back UTI Bank hikes lending rate

Our Bureau

Chennai , March 14

Close on the heels of ICICI Bank's increase of its prime lending rate to 12.75 per cent, UTI Bank has also announced a hike in PLR.

Mr R. Asokkumar, President, Corporate Banking, UTI Bank, said, "We are raising our lending rates from 12 per cent to 13 per cent with effect from today."

Asked if increasing rates would discourage businesses from borrowing, Mr Asokkumar said, "There is tremendous demand for credit which has gone beyond our initial estimates and it is getting difficult to meet the requirements. Our funding costs are also going up and this will have to be passed on."