Country’s largest lender State Bank of India on Tuesday said that it would review the interest rates on home loans in the next 10 days. SBI Chairman O P Bhatt told, “We are still examining the market condition and will take a view on home loan rates in another week or 10 days”.
SBI had increased its PLR by 50 basis points to 12.75% last week. Following the hike in lending rates, the bank also increased deposits rates for various maturities.
The bank expects net interest margin in the range of 3% as compared to 3.09% in the previous year.
Bhatt said credit growth this year would moderate by 2-3% and aims advances to grow at 20-21%.
Speaking about profitability, he said less business would mean less profitability. Impact on volume would have some impact on profitability.
