Pratip Chuadhuri, SBI’s newly appointed Chairman, said that the bank will engage with the RBI to lower the higher-than-comfortable provisioning requirement of teaser loan.
In an attempt to temper the highly charged-up discourse, Mr. Pratip said, “The current provisioning requirement of 2 % on teaser loans is a bit difficult for the bank when compared with the earlier 0.40 %.”
While SBI is the only major bank in the country to continue offering teaser rates on home loan to its customers, it has made it clear that it would not engage with the RBI to solve the issue as it wants to refrain from taking a “belligerent stance” on the same.He added, “The current product offers enormous value to the customers. It has helped millions to own homes. As a final settlement, we would like to have something which delivers value to the customers and also takes care of the regulatory concerns.”