Press Esc to close
Tuesday 01 September 2015
News updated at 12:58 AM IST
Weather
Max: 29.4°C
Min : 21.1°C
In Bengaluru
Sunny day

Kotak Mahindra Bank reduces home loan rates by up to 0.25 pc

Mumbai, Dec 24, 2013 (PTI):
DH Illustration

Private sector lender Kotak Mahindra today followed State Bank of India and mortgage major HDFC by announcing a rate cut of up to 0.25 per cent on their housing loans for a limited period.

Accordingly, new home loans under Rs 75 lakh will be available at 10.25 per cent per annum, down from the earlier 10.50 per cent, while ones above Rs 75 lakh will cost 10.75 per cent as against the earlier 10.90 per cent.

The reduced interest rates will be applicable till January 31. "The rate cut is driven largely by the scenario in the market place, a reduction in our cost of funds and our expectations from the future," its executive vice president and head of retail assets, Sumit Bali, said announcing the rate cut.

The move follows similar ones announced by the country's largest lender State Bank of India and mortgage major HDFC over the past week, ever since the RBI decided on a status quo in its mid quarter policy review.

According to experts, SBI and HDFC, the top two players in the home loan market, were getting benefited as a result of the change in provisioning norms but decided to wait till the policy announcement before passing on the benefit to their customers.

However, Bali said that the decision by Kotak Mahindra is not prompted by the change in provisioning norms as the bank does not benefit much from the change.

When asked about the impact on margins as a result of this move, he said the rise in volumes will help the bank hold on to the current margins.


Go to Top

Photo Gallery
Eunuchs carry wheat saplings on their heads during a procession taken out to celebrate Bhujaria  ...

Eunuchs carry wheat saplings on their heads during a procession taken out to celebrate Bhujaria ...

Local members of Shiv Sena and Dogra Front carrying onions to mark protest against price hike of ...

Local members of Shiv Sena and Dogra Front carrying onions to mark protest against price hike of ...

Kannada actor Shivarajkumar and Geetha daughter Nirupama with Dileep weeding at Tripuravasini  ...

Kannada actor Shivarajkumar and Geetha daughter Nirupama with Dileep weeding at Tripuravasini ...

Members of Yuva Bharath organisation launch a postcard campaign demanding conduct of Dasara in a ...

Members of Yuva Bharath organisation launch a postcard campaign demanding conduct of Dasara in a ...

Rayat panel supporters celeberate the win in the Agricultural Produce Market Committee (APMC) ...

Rayat panel supporters celeberate the win in the Agricultural Produce Market Committee (APMC) ...

A large number of Karnataka Association of Resident Doctors (KARD) members staged protest ...

A large number of Karnataka Association of Resident Doctors (KARD) members staged protest ...

Bollywood Actors Anil Kapoor, John Abraham and Shruti Haasan during promotion of their upcoming ...

Bollywood Actors Anil Kapoor, John Abraham and Shruti Haasan during promotion of their upcoming ...

President Pranab Mukherjee speaking to contributors to the book- '30 Women in Power: Their Voice ...

President Pranab Mukherjee speaking to contributors to the book- '30 Women in Power: Their Voice ...

AIMIM President Asaduddin Owaisi along with others offering tribute to former AIMIM president ...

AIMIM President Asaduddin Owaisi along with others offering tribute to former AIMIM president ...

Police personnel sitting near the charred remains of a motorcyle near the violence-hit Trahi ...

Police personnel sitting near the charred remains of a motorcyle near the violence-hit Trahi ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523