Lending rates to fall, deposit rates to hold, say bankers
economic growth is the need of the hour and hence benefits have to go to the critical areas.
“Today if we are looking at growth in this country fresh investments have to happen. When we said transmission has to happen, it includes other segments like infrastructure and small and medium enterprises,” said KR Kamath, CMD, Punjab National Bank.
Home loan rates set to come down
Home buyers and existing home loan customers can expect some cheer as banks and housing finance companies are looking to pass on the benefits of a CRR cut to customers.
A cut of 25 basis points in the home loan rates would mean the tenure of home loans or EMI’s coming down. For new customers, a 25 bps cut in rates means that for a 20 year home loan the EMI will go down by Rs 17 for every Rs 1 lakh of loan.
Banks and housing finance companies are offering 20-year home loans at 10.5 per cent currently, which is set to go down to 10.25 with the RBI’s move.
A revision by banks in their base rates may also provide some relief to old customers.
“Our Assets Liability Management Committee will sit and examine as to what extent and to what percentage, benefits can be passed onto the customers,” said VK Sharma, director and chief executive, LIC Housing Finance. When asked if the revision will only be for new customers, he said, “We will review the PLR and the benefits will be passed to all.”
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