NEWS & ADVICE : HOME LOANS
SBI extends Rs 1,350 crore under its special home loan scheme
By Joseph Samson
Apr 17, 2009
Print    Email    RSS   

The banker to every Indian, State Bank of India (SBI) has recorded a disbursement of Rs 1,350 crore under its recently announced special home loan scheme.

SBI's Chairman O P Bhatt said, "In the forty days since we commenced the scheme on February 2, we have disbursed loans worth Rs 1350 crore."

The bank is offering an interest rate of 8% under the scheme. This rate is fixed for a period of one year following which it will be altered.

Meanwhile the bank is also offering its auto loans at concessional interest rate of 10%. The reduced auto loan rate has helped the bank to gain the top position in the sector. "I don't have the exact numbers. But Aditya Puri (HDFC Bank MD) called me to say that we have overtaken them, that means we are the leaders in auto loans in the last two months," said Bhatt.

Both the home loan and auto loan scheme of the bank have been extended by another five months until September 30th.

Bhatt also indicate that the interest rates of SBI are likely to come down further in the coming few months. "I don't know about the long term. But in the immediate future, they will fall. We could see rates come down by 25 bps in the next 6 months," he said.

Commenting on the capital raising plans of the bank, Bhatt said that they intend to raise around Rs 60,000-70,000 crore over the next five years. SBI plans to raise a portion of this amount from the capital markets if the government permits. The bank is seeking government's approval for raising fresh capital. "Once we get the nod, we can raise in 2-3 months. Last time, we raised Rs 20,000 crore. So we can't raise any less this time," said Bhatt.

"To be able to serve large Indian corporates that are going out across the world to do business or investments, we need far more capital than what we have now. If we do not raise our capital base, the prudential norms of the regulator will not allow us to serve some of India's best corporates," he said.

Last year also the bank raised Rs 20,000 crore.

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Your EMIs may help you to reduce your tax...
Home Equity Loan: A shoulder you can bank...
A chronicle of excesses by loan recovery...
Tax Deduction on HRA (House Rent Allowance)
A chronicle of excesses by loan recovery...


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive