Festivity buoys Uco
A combination of low interest rates on home loans and a rising demand for housing drove Uco Bank's growth in the home loan segment
Oct 30, 2014
Source : The Telegraph


Calcutta: Public sector Uco Bank has registered an over 67 per cent year-on-year growth in retail credit during the festive season.

Retail advances of the Calcutta-based bank during the last one-and-a-half months stood at around Rs 400 crore. Bank sources said the growth was largely driven by the strong demand for home loans, which constituted 75 per cent of the total retail advances during the period.

A combination of low interest rates on home loans and a rising demand for housing drove Uco Bank's growth in the home loan segment.

An official of the bank said the lender charged an interest rate of 10.20 per cent (equal to its base rate) on home loans, similar to many lenders of its size. He added that the demand for housing loan witnessed a sharp rise in places such as Vijayawada and Surat, which are part of the Centre's smart cities programme.

The bank, however, has seen a marginal improvement in other retail segments such as car loans. It charges a rate of 0.25 per cent over its base rate for new car loans and 4 per cent on advances for used cars.

Chairman and managing director Arun Kaul said the bank would focus on improving its retail credit this year as a part of derisking its balance sheet.

The lender has decided to be selective on corporate credit to avoid adding to its non-performing assets (NPAs). Gross NPAs of the PSU bank for the quarter ended June stood at 4.31 per cent of its total advances. Uco Bank has informed the BSE that it would declare its second-quarter results on November 7.

Meanwhile, bank sources said the lender had identified Kingfisher Airlines as a wilful defaulter. The bank has an exposure of around Rs 300 crore to the company.

Latest Realty News

Delhi Development Authority to have incentive policy for green buildings soon
Oct 30, 2014
NEW DELHI: The Delhi Development Authority is drafting a policy on financial and non-financial initiatives to promote green buildings in the national capital
Property prices likely to remain stable for next 6 mths: Survey
Oct 30, 2014
Mumbai: Even as the overall sentiment in the real estate sector has improved, buyers feel property prices across top 10 cities are likely to remain stable for the next six months
Centre relaxes norms for FDI in construction
Oct 30, 2014
New Delhi: The government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector
Tata Housing Opts For Surmount Energy's BIM Consultancy Services
Oct 30, 2014
Navi Mumbai: TATA Housing has chosen Surmount Energy for BIM Consultancy for the proposed residential project in Kolkata
Chennai’s billionaires’ row
Oct 30, 2014
Chennai: Land value in the three most sought-after places in the city has doubled, and in some cases, tripled
YES Bank enters home loan business
Oct 30, 2014
Mumbai: Yes bank has entered the burgeoning housing loan market, with a focus on the affordable housing segment
The UK Housing 'Bubble' Is Deflating
Oct 30, 2014
The Bank of England released new figures providing more evidence that fears of a house price bubble in have been overblown
KDA speeds up New Transport Nagar scheme
Oct 29, 2014
Kanpur: The chief minister's proposed visit to the city activated Kanpur Development Authority and its officials have started an exercise to settle New Transport Nagar
Realty stocks surge on buzz Govt to take call on FDI relaxation for construction
Oct 29, 2014
Mumbai: Department of Industrial Policy and Promotion (DIPP) has proposed substantial easing of norms for affordable housing and the 100 smart cities
GHMC bulldozes floors for violating building rules
Oct 29, 2014
HYDERABAD: The Greater Hyderabad Municipal Corporation (GHMC) began demolition of illegal floors of a multi-storeyed apartment in Musheerabad

Latest Realty News Of State

Realty Talk's