Public-sector lender United Bank of India (UBI) has entered into a tie-up with SBI Funds Management to offer mutual funds investment products to its customers, especially in the eastern and north-eastern regions.

According to UBI, the latest move will benefit its customers as they will have more opportunities to diversify their portfolio in accordance with their financial needs. Further it would also give a boost to the non-interest income of the bank.

Under the pact, the bank will mainly act as a distribution network for SBI MF mass products, which will be available to the bank's customers across the country. The bank has a total branch network of 1,415 across India.

SBI Funds management is a joint venture between State Bank of India and French financial services major Societe Generale Asset Management. The company is the investment manager for SBI mutual funds (MF). The company has total assets under management worth Rs 29,151 crore as on July, 2008.

In a separate release, UBI has announced an increase in its benchmark prime lending rate by 50 basis points to 14.25% with effect from August 11.