SBI Confirms Stability in Home Loan Rates

December 30, 2009: The State Bank of India (SBI) does not foresee any immediate change in lending rates. SBI chairman .P. Bhatt, who was in the city today, said the bank's initiative in the home loan segment had helped both customers and real estate developers.

"We reduced the home loan lending rates to 8 per cent per annum and as a result developers and customers started returning to the market. Other banks were also forced to follow our footsteps," Bhatt said.

He claimed there was enough liquidity in the market and credit growth had not yet picked up. "I don't see any hike in lending rates of the bank in the next six months. There is enough money available in the market and banks are not facing any difficulties in providing credit to customers at this point of time," said Bhatt.