Millennium Post

SBI cuts interest on home loans above Rs. 75 lakh by 10 bps

SBI cuts interest on home loans above Rs. 75 lakh by 10 bps
Close on the heels of RBI's policy action, India's largest lender State Bank of India has lowered interest rates by 10 basis points on home loans above Rs 75 lakh.

The new rates are effective June 15, the bank said in a statement here on Friday. For the salaried woman, the new rate will be 8.55 per cent while for others, it is 8.60 per cent.

"Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs 75 lakh," MD (national banking) Rajnish Kumar said.

In the second bi-monthly monetary policy review announced on June 7, RBI had reduced LTV (loan to value) ratios, risk weights and standard asset provisioning rate for individual housing loans for new customers. For housing loans above Rs 75 lakh, the central bank lowered the risk weight to 50 per cent, from the earlier 75 per cent. The standard asset provisions, or the amount of money to be set aside for every loan made, on home loans was brought down to 0.25 per cent from 0.40 per cent. In April this year, SBI had reduced its interest rates by 25 basis points. pti

'May not need capital for 1 year after ₹15K-cr QIP'

After raising Rs 15,000 crore through the largest-ever equity issuance in the country, State Bank of India on Friday said it is comfortable on the capital front and will not seek any capital infusion from the government in the current fiscal. The bank recently raised Rs 15,000 crore through qualified institutional placement. It issued around 52.21 crore new shares at a price of Rs 287.25. "As per the plan we have put in place, we are quite comfortable on the capital front till next year. We will not require government funds (in FY18). At this point we have not asked for capital (from the government). said SBI.


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