The Hindu Business Line : Top PSBs in South may not cut rates

Chennai, Oct. 10 Banks down south aren’t going to follow big brother SBI in cutting home loan or car loan rates just now. Top bank officials said that their rates were already lower.

Mr. M.B.N.Rao, Chairman and Managing Director, Canara Bank, said that his bank had already cut rates for new home borrowers by 0.50% last week. He said that with the onset of the festival season, this is normally the period when bank loans pick up after the slack season. While conceding that a cut may not necessarily see a large increase in loan applications, he said, “ It is a question of competitiveness – when there are half a dozen major players. The finer pricing will help retain the customer who might otherwise go elsewhere.”

Mr. S.A. Bhat, Chairman and Managing Director, Indian Overseas Bank, said that he would be looking into the rates prevailing in the market. He said, “We are going to review our rates on the next Monday (October 15). If they are in line with the market, we will not reduce our rates. If they are not in line, then we may also consider going in for a festival offer.” He said that festival offers help the bank’s marketing efforts for a short period.

Mr. Sundara Rajan, Chairman and Managing Director, Indian Bank, said that his bank would not be cutting rates since their rates were already lower. He said, “ Indian Bank is getting more than enough applications for home loans even at our current rates. There is no need for us to cut rates at this juncture.” Pointing out that the bank’s rates were between 9% and 9.75% across the entire tenor from less than five years to more than 20 years, he said, these rates are highly competitive in the market.

Related Stories:
SBI may cut rates on deposits
Indian Bank cuts FCNR (B), NRE term deposit rates

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page