India’s biggest lender, State Bank of India might be extending the duration of teaser home loan scheme further. But this decision depends completely on the liquidity status of the bank.
Presently, SBI has excess liquidity of Rs. 40,000 crore as of 31st March 2010.
Mr R. Sridharan, MD and Group Executive (Associates and Subsidiaries), SBI said, “We are sitting on surplus liquidity at present, lending at eight per cent would make more sense than parking the funds in reverse repo, which will fetch us only about 3-3.5 per cent. We will review the need for extending the scheme further based on our liquidity position”.
The bank had lately re-extended its teaser loan scheme up to June 2010.
SBI has seen an enhancement in its NIM at 2.96% for the quarter ended March 31, 2010, as compared to 2.39% for the equivalent period last year.
Sridharan said that the home loan scheme had not had any negative effect on the NIM of the bank but “it has only had a positive impact on our margins,” he said further.
The home loan segment has posted a growth of 32% as on 31st March,2010.
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