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MANGALORE, Jan. 27

CORPORATION Bank has decided to reduce its interest rates on home loans with effect from January 28.

For loans having a repayment period of up to five years, the interest rate has been reduced by 50 basis points and for a repayment period of more than five years it has been reduced by 25 basis points.

As a result, the floating rate on a loan of up to five years has come down to 8.5 per cent. For loans with a repayment period between five and less than 10 years, the rate will be 9.25 per cent, and for loans with a repayment period between 10 and 25 years, the rate will be 9.75 per cent. The equated monthly instalment (EMI) for a loan of Rs 1 lakh for a period of 25 years under the revised rates works out to Rs 886.

In the case of fixed rate loans of up to five years, the interest rate will be 8.75 per cent, for loans with a repayment period of between five and less than 10 years, the rate will be 9.5 per cent and for loans for a period of 10 years the rate will be 10 per cent. In the case of loans taken on a fixed interest rate, the repayment period is restricted to ten years.

In all these slabs, interest is charged on a daily reducing balance, according to a Corporation Bank press release.

FCNR (B) rates revised further

The bank has also revised its interest rates on FCNR (B) deposits. The revised rates will be applicable only to fresh deposits and deposits renewed on or after January 27.

Currently, FCNR (B) deposits are accepted in three currencies — the US dollar, the Great British Pound and the Euro. The new interest rates on US dollar deposits for a period of one year and less than two years is 1.15 per cent (previously 1.2 per cent). The interest rate for two years and less than three years will be 1.65 per cent (1.75 per cent) and for deposits of a three-year duration the rate will be 2.3 per cent (2.3 per cent).

Interest rates on Euro deposits have also been revised and for a period of one year to less than two years the rate will be 2.4 per cent (2.45 per cent). The revised rate for two years and less than three years will be 2.5 per cent (2.65 per cent) and for three years it will be 2.7 per cent (2.9 per cent).

The interest rates on Pound deposits for one year to less than two years and two years and less than three years remain unchanged at 3.65 per cent and 3.85 per cent respectively. For a period of three years, however, deposits will earn interest at the rate of 3.95 per cent (4.00 per cent).

Interest rates on RFC deposits, which can now be opened in the Pound or Euro (apart from existing US dollar deposits), have also been revised. The interest rate on RFC-SB accounts has been revised to 0.5 per cent from the existing 1 per cent with effect from January 13.

On RFC term deposits for the remaining maturities of one month, two months, three months and six months the interest rates will be based on market rates. And in the case of RFC deposits of periods beyond one year up to a maximum period of three years the rates as applicable to FCNR (B) deposits of various tenures shall apply, according to a bank press release.

Signs pact for sharing ATMs

Corporation Bank has now signed an agreement with Allahabad Bank for the mutual sharing of their automated teller machine (ATM) networks.

An agreement to this effect was signed at the corporate office of Corporation Bank here by the Executive Director of Corporation Bank, Mr P.K. Gupta, and the Executive Director of Allahabad Bank, Mr K.K. Rai.

With 317 ATMs, Corporation Bank claims to have the second largest ATM network amongst all the public sector banks in the country. The bank plans to take the number of its ATMs to 500 by the end of the current financial year.

Allahabad Bank, on its part, has 47 ATMs, which it plans to increase to 101 by this September.

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