Banks to attract customers with Festive Offers
Banks are betting big on the festive atmosphere to compensate for slow loan growth to date, waiving the processing fees, and even reduce the already thin margins. The higher interest rates offered on Fixed deposits as well.
Bangalore-based Vijaya Bank is to attract customers by keeping home loan lending rates unchanged despite the recent rise in base rates. It set the interest rate on loans to 10.75 %, almost to the base level of 10.65 %.
Public sector lender has also launched a “mutual Paddle” in two days, where guests had to get 50 % concession to the processing fees on the spot fines. “We have 165 online loan decision in principle to sanctions on the first day. Quantity sanctions Rs 43 crore was about and we expect cross-RS 100 crore by the end of a two-day offer,” said Upendra HS Kamath, Chairman and Chief Executive Officer.
Banks seek to increase credit growth, which has suffered because of high interest rates. Most of them have lowered their credit growth targets for this fiscal year.
Another public sector lender, Union Bank of India, is planning to offer the same direction. “We want to bring in the festive offer deposits and loans, around September-October. Usually these offers are introduced around Diwali, then back to the New Year,” said S Govindan, general manager. It is also to launch a mobilization of savings into account.
ICICI Bank, the country’s largest private sector lender, has also scheduled the launch of its fixed-cum-floating mortgage system for the start of the holiday season.
Pune-based Bank of Maharashtra has developed a gold mine of the festival to its depositors, offering a maximum of 9.35 % on deposits of three years. The bank said the plan may continue until late October and will be able to collect Rs 2,000 crore worth of deposits. These plans are at a time when high interest rates for deposits have already damaged the growth of low-cost checking and savings deposits.
Banks looking to save costs of collecting deposits total funding for a longer period of relatively cheaper prices. “We have to pay interest at 9.15 % on loans through bulk deposits within three months. But by offering a little more, said an interest rate of 9.30 % of deposits, we are able to borrow for one year, “said AS Bhattacharya, President and CEO of Bank of Maharashtra.
Click here to apply Personal Loan Bangalore
Banks have reduced their growth rate slowed down trade with the following objectives sampling credit the account of increases in interest rates. The Reserve Bank of India has raised rates 11 times politics in the last 16 months, making funds more expensive.
Source: [Business Standard]
Processing your request, Please wait....
