IDBI Bank cuts home loan, deposit rates

03 March 2009

Mumbai: Heeding to finance ministry's call to cut interest rates, the Industrial Development Bank of India (IDBI) has cut home loan rates by up to 1 per cent for new customers effective today.
 
''We expect the housing loan demand to pick up rapidly in the coming months as government's fiscal stimulus packages will help regain the consumer confidence,'' IDBI Bank's head of personal banking, C S Jain said.

The floating rate for home loans up to Rs20 lakh has been reduced by 100 basis points (bps), while for loans above Rs20 lakh the reduction will be by 50 bps, the bank said.

With this, IDBI Bank's customers can avail home loans up to Rs20 lakh for 9.75 per cent per annum and loans above Rs20 lakh at 10.25 per cent.

In terms of fresh housing loan disbursals, IDBI Bank is the third largest in the country and expects to improve its performance with the rate cuts, Jain said.

The bank has also reduced its deposit rates across certain maturities by 25-50 bps effective Friday.

With the reduction in deposit rates, IDBI Bank's deposits having 1,100 days maturity will now carry a rate of 9.25 per cent as against 9.5 per cent earlier.