According to a recent press report country’s largest lender State Bank of India’s chairman Pratip Chaudhuri has said there will be a hike in its interest rates in the next 15 days. He said that the bank is likely to hike its rate in another 15 days. He also said that the quantum of the rate hike is likely to be equal to the RBI’s 25 basis point hike.
Reports said that in order to tame high inflation, which stood at 9.74% for August, RBI hiked its short term lending rate by 25 basis points to 8.25%.
Indian Overseas Bank chairman and managing director Mr. M. Narendra had also said that banks needed to pass on the hike to customers as their cost of funds has gone up.
SBI has now put an end to the teaser loans (home loan), the chairman Mr. Pratip said that SBI Easy Home Loan and SBI Advantage Home Loan (teaser rate products) will be replaced by floating interest rate schemes on par with other commercial banks. Though some of the other banks have started issuing the teaser loans, SBI has said that it does not have any idea of issuing teaser loans.