The largest Indian lender, State Bank of India (SBI) does not see any change in the interest rates in the near future.
The bank's chairman O.P. Bhatt pointed out that the bank's initiative I the home loan segment had helped both customers and real estate developers.
"We reduced the home loan lending rates to 8 per cent per annum and as a result developers and customers started returning to the market. Other banks were also forced to follow our footsteps," he said.
Bank of India is also likely to announce the 8% home loan offer.
The chairman pointed out that there was enough liquidity in the system and the credit demand was low.
He further said that he did not see any hike in lending rates of the bank in the next six months because of high liquidity in the system. "Banks are not facing any difficulties in providing credit to customers at this point of time," he added.
Recently, SBI has signed an MoU with GM to finance its range of vehicles. According to the memorandum, State bank would provide retail and wholesale financing to customers for purchase of GM India vehicles across 12,150 branches.