SBI To Review Home Loan Rates

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.