SBI rules out any immediate change in home loan rates

SBI rules out any immediate change in home loan rates
Financial Express, November 5, 2009, Page 13

Press Trust of India, Mumbai

State Bank of India on Wednesday said it did not have any immediate plans to revise its home loan rates, including that of the 8% special scheme originally slated to end this week.

“We have decided to keep the rates at the same level in the immediate future (including the 8% scheme). The current rate structure will continue,” SBI chief general manager P Nandakumar said.

The bank was responding to media reports that SBI may withdraw the special home loan scheme, which offers 8% fixed interest rate for loans upto Rs 5 lakh for five years.

It also offers loans upto Rs 50 lakh at 8% for the first year and at 8.5% in the second and third years. The scheme was supposed to end on November 7.

The bank had sanctioned Rs 17,537 crore under the scheme and provided loans to 1,16,174 people from February to September this year.

The bank has achieved a 30.6% growth under the scheme during the period compared to its earlier projection of 24%.

State Bank is understood to have plans to come with some special offers on home loans in the near future.

The bank had seen a 23.40%growth in its home loan portfolio in the quarter ended September 30.

On the back of a healthy growth in net interest income and core fee income, State Bank clocked a 10.19% jump in its standalone net profit at Rs 2,490-crore in the second quarter of the current financial year.

SBI witnessed a healthy credit growth of 16.39% in the quarter and is optimistic about achieving a growth rate of 22% for the full financial year.

The lender’s advances grew to 5,80,237-crore, up 16.39% as compared to Rs 4,98,513 crore in the second quarter of the last fiscal.

Its car loans grew by 44.45% in the quarter, large and mid-corporate loans and education loans grew by 14% and 42.23%, respectively.