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BoB sanctions Rs 300-cr credit line to UTI

Rukmani Vishwanath

MUMBAI, July 13

BANK of Baroda (BoB) has sanctioned a Rs 300-crore line of credit to Unit Trust of India (UTI), senior a bank official said.

UTI has been approaching banks and financial institutions for funds to bail out investors in its Units-64 scheme.

The line of credit will be for six months at an interest rate of 10 per cent per annum, against the collateral of Government securities, the bank official said.

The bank will provide Rs 150 crore in cash and the balance as overdraft facility.

UTI is also understood to have approached Bank of India and other banks including State Bank of India for assistance.

``We are examining UTI's request and are prepared to provide assistance against bonds and securities,'' said a senior Bank of India official.

Earlier this month UTI had reportedly entered into a Repo deal with Union Bank of India to borrow Rs 500 crore.

UTI is said to have borrowed the amount for a period of 90 days against the collateral of Government securities at the rate of interest of 9-10 per cent.

UTI, which is working out a relief package for its US-64 investors, reportedly received clearance for Rs 1500 crore from State Bank of India.

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