Bank of Baroda cuts home loan rates
10 September 2012
State-run lender Bank of Baroda (BoB) today announced a 0.25 per cent reduction in home loan rates across all categories and for both new as also existing customers, in line with its state-run peers, according to PTI.
The new rates would come into effect today, the third-largest public sector lender said in a statement.
The lender said it had offered a stimulus to sagging demand amid the ongoing slowdown reducing the interest rates on home loans by 25 bps across the board for its existing and new borrowers.
The country's largest lender, State Bank of India (SBI), in a surprise move last month had announced a similar cut in its retail offerings, including home and auto loans.
Since then the lender said it had seen an uptick in demand.
Meanwhile, other lenders including IDBI Bank, Oriental Bank of Commerce, Corporation Bank, Dena Bank and Indian Bank, too, had cut interest rates following the SBI move.
In a departure from others, BoB stated that benefits of the rate cut had been also extended to existing borrowers.
In a separate development, BoB announced a reduction in spreads on its trader loans facility by 1 percentage point, following which loans would be available at 13.5 per cent with the new rate coming into effect today.
Shares of the bank were down Rs0.65, or 0.1 per cent, to trade at Rs632.15 and the total volume of shares traded was 17,332 at the BSE today in the afternoon.