UCO Bank Shares Rise 2% After Lending Rates Hike
Shares of UCO Bank rose 2% in early trading on September 11, after the state-run lender raised lending rates across tenures. The stock opened at Rs 35.25 on the NSE and was trading at Rs 35.85 at 11:29 am, up from its previous close of Rs 35.25.
On September 8, UCO Bank announced a 5 basis points increase in lending rates across tenures. One basis point is one-hundredth of a percentage point.
The revised marginal cost of fund-based lending rates (MCLR) and Treasury Bill Linked Lending Rates (TBLR) are as follows:
- Overnight: 7.95%
- One-month: 8.15%
- Three-month: 8.30%
- Six-month: 8.55%
- One-year: 8.70%
Benchmark rates such as repo-linked rate, base rate and BPLR will remain unchanged.
The increase in lending rates is in line with the trend of other banks, which have also raised rates in recent months. The RBI has been hiking interest rates in an effort to control inflation.
In an interview with Moneycontrol in the previous month, UCO Bank MD and CEO Ashwani Kumar said that the Kolkata-based bank would join the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) pilot project by September.
Kumar added that while the bank would initially join only in the retail segment, it would look for more opportunities in the future.
The CBDC pilot project is a central bank-issued digital currency that is intended to complement cash in the economy. The RBI is currently testing the CBDC with a select group of banks.
The rise in UCO Bank shares is a positive sign for the lender. The bank has been making progress in recent years and is now well-positioned to grow in the future.
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