Taking a cue from RBI's monetary policy actions, public sector lender Union Bank of

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India today announced a hike in lending and deposit rates with effect from August 4.

The bank has increased deposit rates by 0.25-1 per cent across maturities. It has also upped the Benchmark Prime Lending Rates (BPLR) by 0.5 per cent to 12.25 per cent from 11.75 per cent, a release said here.

With the increase, one-year maturity deposits will now attract a rate of 6.75 per cent from 6.5 per cent earlier.

Also, rates for short-term deposits of 91 days to less than 6 months and 6 months to less than 9 months, have been increased from 3.5 per cent to 4.5 per cent and 4.5 per cent to 5 per cent respectively, the bank said.

Yesterday, private lender Kotak Mahindra Bank raised deposit rates by 0.25-0.5 per cent across various maturities.

The bank has upped rates for all tenors by quarter percentage except for 271 days to less than one year maturity, where the interest rate has been increased by 0.5 per cent.

Also, the rate for 7-14 days deposits has been lifted to 3 per cent from 2 per cent earlier to adjust it in line with savings deposit rate.