New Delhi: October 31 has become a much awaited date for the banking sector in India. RBI's monetary policy review is expected on this day. Whether the banks will be able to sustain the current discounts offered on home loans and other retail loans will depend largely on RBI's policy changes.
Witnessing tremendous slowdown in new loan off take during the past few months and widespread industry concern, Finance Minister P Chidambram, asked the banks to go soft on interest rates. Reacting to the Finance Minister's advice almost all the major public sector banks offered discounts on home loans, auto loans and other retail loans.
SBI, the largest public sector bank in India offered discounts on interest rates and processing fees up to December 31 this year while other banks were far more conservative and decided to wait for RBI's declaration before extending the discounts beyond October 31.
Current home loan interest rate standing of major banks after the festival discount are listed in the table below:
|Indian Bank||9.5 %|
|Bank of Baroda||10.5%|