June 29 (Reuters) - Union Bank of India (UNBK.BO) said on Tuesday it has fixed the base rate for loans at 8 percent, as part of a new rule that requires banks to set their minimum lending rates.
The base rate will be applicable to all new loans sanctioned on or after July 1, as well as renewed after that date, the lender said in a statement to the stock exchange.
Earlier in the day, State Bank of India (SBI.BO), the nation's largest bank, said it has set its base rate at 7.5 percent, while Punjab National Bank (PNBK.BO) set its base rate at 8 percent.
The Reserve Bank of India introduced the new lending rate system or the base rate to ensure that larger borrowers do not bargain for cheaper rates. (Reporting by Aniruddha Basu; Editing by Sunil Nair)
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