SBI to continue with limited periodrates on home loans till end-fiscal
10 February 2010
India's largest public sector bank, State Bank of India (SBI), plans to continue with its limited period offer on home loans, popularly called 'teaser rates' till the end-fiscal, which analysts say could widen differences with RBI on the issue.
According to SBI chairman OP Bhatt, RBI had not objected and SBI would not do anything to which RBI objected to. Bhatt was speaking on the sidelines of a function in Delhi on yesterday.
The central bank has over the past month raised the issue of special rate home loans or referred to as teaser loans repeatedly.
On Monday RBI deputy governor Usha Thorat had said that banks should have taken whatever message was given. She had frowned last month on the fact that teaser rates were increasingly being offered, which was a cause for concern.
RBI deputy governor KC Chakrabarty had also expressed his displeasure over existing customers being excluded from the benefits.
The central bank has also said that banks needed to explain to their borrowers about the implications of such rates and appraise capacity of borrowers to make repayments when rates went up.