State home loan lender reduces ratesJune 22nd, 2009 NEW DELHI - State-owned home loan lender Housing and Urban Development Corp (HUDCO) has lowered interest rates by up to 125 basis points. The new rates, which will come into force Tuesday, will bring down rates from 9.5 percent to 8.5 percent for home loans taken by widows and people from the Scheduled Castes (SC) and the Scheduled Tribes (ST) categories, a government statement said.
ICICI Bank cuts lending rates by half a percentJune 4th, 2009 MUMBAI - India's largest private sector lender ICICI Bank has cut the floating reference rate (FRR) by 50 basis points, including the floating home loan rate, the company announced Thursday. The revised FRR will be 12.75 percent as against 13.25 annually, the bank said in a regulatory statement.
SBI may review rates by May-endMay 8th, 2009 KOLKATA - State Bank of India (SBI), the country's largest lender, may review rates by May-end as it has seen a steady rise in deposits last fiscal, a top official said here Friday. 'Our deposits are growing at fantastic rates; we see an excess of supply over demand,' SBI chairman O.P.
ICICI Bank's Kamath joins Infosys as directorMay 2nd, 2009 BANGALORE - Infosys Technologies Ltd appointed K.V. Kamath, non-executive chairman of ICICI Bank, as an additional director to its board, the IT bellwether said Saturday.
PNB reduces lending rate by 50 basis pointsApril 30th, 2009 NEW DELHI - The Punjab National Bank on Thursday reduced its benchmark lending rate by 50 basis points to 11 percent. The Benchmark Prime Lending Rate (BPLR) has been slashed from 11.5 per cent to 11 per cent effective tomorrow, the bank said in a statement.
India's ICICI bank quarterly profit down 35 pct on low fee income, braces for more bad loansApril 25th, 2009 India's ICICI bank quarterly profit down 35 pctMUMBAI, India — ICICI Bank Ltd., India's largest private bank, said Saturday that its quarterly profit slid over 35 percent as the global financial crisis eroded fee income in commercial and retail banking. The bank said it was also bracing itself for rising bad loans by increasing provisions.
ICICI asked to compensate consumer for deficiency of serviceApril 6th, 2009 NEW DELHI - A consumer who was penalised by the ICICI bank despite cancelling her loan was awarded compensation by the consumer commission Monday which found the bank guilty of deficiency of service in the case. Kiran Sikri had applied for a car loan from the ICICI bank but due to the ongoing recession she requested the bank to cancel the loan.
ICICI Bank urges government to unveil borrowing plansApril 4th, 2009 KOLKATA - India's largest private lender ICICI Bank Saturday urged the government to spell out 'how it plans to manage its borrowings'. 'There are concerns on the impact the government borrowings will have on liquidity, pushing up interest rates,' K.V.
ICICI Bank slashes home loan ratesMarch 7th, 2009 MUMBAI - Two days after the country's central bank lowered key rates, private lender ICICI Bank Friday cut interest rates in new home loans by 25-50 basis points. For home loans less than Rs.2 million, the lending rate would come down to 9.75 percent from 10 percent, a bank spokesperson said.
UCO Bank to give incentives to borrowersMarch 7th, 2009 KOLKATA - The state-owned UCO Bank has decided to provide 50 basis points loan rate cut to borrowers in some sectors as incentives, a top bank official said here Friday. 'We have decided to give incentives of 50 bps to particular sectors like housing, auto and consumer loans.
Punjab National Bank cuts car loan rates by 50 basis pointsMarch 1st, 2009 NEW DELHI - Public sector lender Punjab National Bank (PNB) has lowered interest rates for car loans by 50 basis points, effective from Sunday. 'The interest rate on car loan would come down from 11-11.5 percent to 10.5-11 percent, with effect from March 1,' PNB said in a statement Saturday.
Union Bank cuts new home, car loan ratesMarch 1st, 2009 NEW DELHI - Public sector lender Union Bank of India has lowered interest rates on new home loans by 25 to 100 basis points and car loans by 125 to 150 basis points. The new rates would be effective from Sunday, the bank said in a statement Saturday.
First digital Lok Adalat to be held in Delhi SundayFebruary 6th, 2009 NEW DELHI - India's first digital Lok Adalat, which will be completely paperless, will be held here Sunday to try civil and criminal cases related to ICICI Bank, an official said. 'In this Lok Adalat, both criminal cases and civil suits would be taken up.
More state-owned banks reduce lending ratesDecember 28th, 2008 NEW DELHI - Dena Bank, Punjab National Bank (PNB) and Bank of Baroda will reduce their benchmark prime lending rates (BPLR) from Jan 1, the three state-owned banks announced Monday. Dena Bank will cut its BPLR by 75 basis points from 13.5 percent annually to 12.75 percent.
Punjab National Bank, Bank of Baroda reduce lending ratesDecember 28th, 2008 NEW DELHI - Punjab National Bank (PNB) Monday reduced its benchmark prime lending rate (BPLR) by 50 basis points from 12.5 percent annually to 12 percent from Jan 1. Bank of Baroda too reduced its BPLR by 75 basis points from existing 13.25 percent to 12.5 percent, also from Jan 1.
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June 15th, 2009 at 12:58 pm
I have seen recent advertisement in the news paper to give loan at reducing 8.5% per annum. I have existing loan going on at 11.75% per annum. I am not too sure why the difference. Is to attract new customer and give them loan and charge a higher rate later.
That is what has happened to my loan, When I started my loan in Nov 2006 the rate was 7.75% and it reached to a peak level of 12.5% and now it has reduced a bit to 11.75%.
I have a very simple question to the institute, when you are acquiring new customer at 8.5% (floating rate) how can you charge more amount to your existing customer.
Though the interest rate change has recently been announced to be effective from June, there are no changes on the EMI shown in the amortization schedule.
As a normal practice RBI should not allow charging differential or less interest rate to new customers. This is highly unethical on bank’s part. As the existing customer has already committed to the bank by taking a loan from the bank.
I think RBI should observe and investigate this matter. If not we should approach higher authorities for taking corrective action.
As my experience with a bank does help me understand the asset & liability imbalances from the bank’s perspective. I can see that bank is exploiting existing customers and taking the observer or regulator ( RBI) for a ride.