'SBI reviewing home loan rates'
After HDFC and IDBI hiked home loan rates, State Bank of India is reviewing housing loan interest rates.india Updated: Feb 02, 2006 17:57 IST
After HDFC and IDBI hiked home loan rates, State Bank of India on Thursday said it is reviewing housing loan interest rates.
"Our interest rates on home loans are under review," AK Purwar, the chairman of the country's largest lender, said here without giving any timeframe for the revision.
Short-term interest rates are under definite "upward" pressure, he said.
HDFC hiked home loan rates yesterday by 0.5 per cent across all segments while IDBI Bank followed suit, increasing retail loan rates by 0.25 per cent.
India's second largest lender ICICI Bank is also closely watching the developments and is expected to announce its stance on lending rates by this week-end.
The pressure on banks to increase lending rates is rising due to increase in cost of funds, as deposit rates are moving up, besides the recent increase in short term rates (repo and reverse repo) by Reserve Bank.