SBI surprises with rate hike on home loans
SBI is the first major public sector bank to hike rates
Sep 20, 2013
Source : The Times of India

 

DELHI: Home loans have become costlier with State Bank of India (SBI) hiking its benchmark rates and revising the pricing in retail loans. The bank has also raised its deposit rates to increase the pace of fund mobilisation.

A Rs 30-lakh home loan from SBI will now cost 10.1%, while loans for a higher amount will attract 10.3%. Earlier, the rates were 9.95% and 10.1%, respectively. Existing borrowers will, however, see their rates rise by only 10 basis points. This is perhaps the first time that existing borrowers will pay a lower rate than new borrowers following a revision in the spread. The spread refers to the mark-up over the benchmark base rate, which has been revised from 9.7% to 9.8%.

SBI’s move has surprised other lenders as the move comes a day ahead of the Reserve Bank of India’s mid-term policy review. Bankers have made a representation to RBI seeking a one percentage cut in cash reserve ratio to provide some relief on liquidity. An SBI official said the decision to increase rates was taken by the bank’s asset liability committee, which meets on 19th September.

Before SBI, HDFC, HDFC Bank ICICI Bank, and Axis Bank had increased their lending rate. But SBI is the first major public sector bank to hike rates. The future course of interest rates will depend on the measures announced by RBI governor Raghuram Rajan in his policy review on Friday. Even after the increase in rates, SBI’s home loans continue to be the cheapest among all lenders.

Latest Realty News

Strong fundamentals behind more launches in Mumbai
Sep 20, 2013
MUMBAI: At a time when the economic slowdown has severely affected new launches in many property markets across India, Mumbai has seen the maximum launches in the first half of 2013. This shows without a doubt that the fundamentals of the city are still strong, making it a very resiliant property market. Even the NRIs prefer to bet on a matured market like Mumbai, compared to any other emerging market, due to the fact that the island city is the financial capital of the country. The overall real
Strong fundamentals behind more launches in Mumbai
Sep 20, 2013
DELHI: Announcing the advent of a grand new concept for Delhi-NCR region, Shri Infratech today announced its magnificent integrated township project ‘Vedic City’. Located in the region of Greater Noida, the design and aesthetics of this grand project are inspired from Vedic era and yet imbibing the most modern aspects of urban planning.
Budget housing finds demand in Bangalore South
Sep 20, 2013
BANGALORE: From housing some of the oldest localities in Bangalore, the south has stretched far beyond to witness development up to Hosur. The main factor pushing growth has been the proliferation of the IT/ITeS sector in this belt. Civic projects such as the Hosur Road expressway, the upcoming Metro line, good social infrastructure and lower land cost towards the peripheries have led to residential development along this corridor. Some of the localities that have come into focus are J P Nagar,
RBI and Finance Minister mull cheaper home loans
Sep 20, 2013
DELHI: With little headroom to cut interest rates, the finance ministry and the RBI are considering a plan to give cheaper funds to banks to lend to the housing sectors as the festive season approaches. “The finance ministry is evaluating a scheme launched by the Bank of England wherein it provides funding to banks and building societies at lower rates,” a ministry official said.
A square look at the revised Land Acquisition, Rehabilitation and Resettlement Bill
Sep 20, 2013
MUMBAI: The Land Acquisition Bill, which the new Bill now supersedes, is a century-old law with many archaic elements and loopholes. The new Land Acquisition Bill essentially champions the cause of the marginalised section and puts in place many safeguards and checks. The Parliament has now passed the new Bill with amendments such as exclusion of irrigation projects from the compulsory Social Impact Assessment study within a period of six months from the date of acquisition, and tweaks in Clause
Non-resident Gujaratis wary of investing in realty sector
Sep 20, 2013
AHMEDABAD: Contrary to the belief that the depreciating rupee will bring in investment from non-resident Indians (NRIs) into the real estate industry, Gujarat has seen up to 50% decline in investment by global Gujaratis this year from three years ago.
The property market is witnessing some structural changes with developers gradually coming out of th...
Sep 20, 2013
BANGALORE: Developers are now focusing more in their own regions and are selling their non-core businesses to improve their balance sheet. Further, interest in tier II city investment has also reduced as investors are unable to make the desired returns in their earlier portfolios.
Greater Noida authority launches industrial plots scheme
Sep 20, 2013
GREATER NOIDA: The Greater Noida Industrial Development Authority has launched a scheme offering industrial plots of sizes greater than 2,100 square metres.
Avenue Venture invests Rs 55 crore in Rohan Builders' housing project
Sep 20, 2013
DELHI: Private equity firm Avenue Venture Real Estate Fund has invested Rs 55 crore in a residential project developed by Rohan Builders in Bangalore, property consultant Jones Lang LaSalle India said.
Red Fort Capital invests Rs 365 cr in Lotus Greens Developers
Sep 20, 2013
DELHI:Real estate firm Lotus Greens Developers today said it has raised Rs 365 crore from private equity firm Red Fort Capital for the development of housing projects in the national capital region.

Latest Realty News Of State

Realty Talk's