SBI cuts home loan rates by up to 0.60%, auto loans by 0.50%
Heavy computer-based trading caused a rush of orders for dozens of stocks, ranging from well-known bellwethers like General Electric to tiny Wizzard Software Corp, whose shares soared to $14.76 after closing the previous day at $3.50. The NYSE has cancele
India's largest bank State Bank of India on Wednesday cut home loan rates by between 0.25 and 0.60 percent. The revised rates, however, are applicable only to new loans; existing customers will continue with their current rate of interest.
State-owned SBI also cut auto loan rates by 0.50 per cent. The rate cuts will become effective August 7.
SBI, India's largest lender by assets, is seen as a bellwether for retail lending, and has traditionally led the way in cutting home and auto loan rates. The latest cut also signals the bank's attempt to boost retail credit even as economic growth is slowing.
The rate cut also comes at a tiime when the Reserve Bank has not cut interest rates, citing high inflation, and cut its GDP growth projection to 6.5 per cent from 7.3 per cent for fiscal 2013.
The home loan rate cut, in particular, will be useful to customers who already have a loan from another bank. With the prepayment of loans now abolished, such customers will be able to take advantage of lower rates to refinance their mortgage.
The auto loan rate cut is also expected to spur some demand, despite the fact that auto sales are usually slower at this time of the year. They are expected to pick up late August and early September, when the festive season in India typically kicks off.