SBI cuts home loan rates; shares fall
Shares in State Bank of India fell 1.1 percent as a result of their declaration to cut home loan rates for new borrowers.
SBI cut its rate on auto loans to 10.75 percent from 11.25 percent, while cutting home loans to a range of 10.25 percent to 10.4 percent depending on the lent amount.
The cut came after the central bank on Tuesday cut banks’ statutory liquidity ratio.
Even though adverse impact can be noticed immediately in share market, the SBI management defended their decision and stated that they are looking at incremental growth from these rate cuts and that the cuts will prove to be positive in the long run.
Other banks also followed as they would need to match SBI’s rate. Private lender HDFC Bank lost 0.7 percent.
auto and home loan rates, HDFC bank, home loan cuts, Home loans, Housing loans, incremental growth, loan cuts, Loans, SBI, State Bank of India, Statutory liquidity ratio
[...] SBI cuts home loan rates; shares fall [...]