SBI holds home loan rates

SBI, surprisingly did not pass on any benefit from its deposit rate cut to home loan seekers.

SBI, surprisingly did not pass on any benefit from its deposit rate cut to home loan seekers. The bank currently charges 10.75% interest on its home loans for amounts up to Rs. 30 lakh, while for amounts between Rs. 30 lakh and Rs. 75 lakh it charges 11%. For loan amounts exceeding Rs. 75 lakh, SBI charges an interest of 11.25%.

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"By cutting deposit rates, SBI wants its cost of funds to come down first," said Kajal Gandhi, banking analyst, ICICI Direct.

"We expect it to cut base rate within a month because of the pressure from the government."

Analysts also said that SBI, due to margin pressures, did not have much leeway to cut rates.