United Bank of India cuts base rate, shares rise

United Bank of India has said it would cut its base rate by 25 basis points to 10 per cent from February 1, after the Reserve Bank of India itself cut rates in a surprise inter-meeting move.

The central bank earlier on Thursday announced a 25 basis points cut in repo rate to 7.75 per cent with immediate effect. RBI also adjusted the reverse repo rate to 6.75 per cent.

Shares of United Bank of India extended gains to 4.2 per cent after the announcement.