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Wednesday, October 3, 2012

Retail loans: Federal Bank to decide on cut in interest rates soon

Private sector lender Federal Bank will decide on a cut in interest rates on retail loans next week, said a senior official at the bank.

“There is a possibility that interest rates may go down. Our Asset Liability Committee will decide on the rate cut next week,” said D. Sampath, Head of Retail Banking, Federal Bank.

The Kochi-based bank has announced that it will offer home loans at its base rate of 10.45 per cent from October 3 to October 18 as part of the 67th anniversary celebrations. Earlier, the minimum rate of interest on home loans was 10.78 per cent.

The home loans sanctioned by the bank in the first quarter of FY13 was almost flat at Rs 209 crore from Rs 210 crore in the first quarter of FY12.

“Our home loan growth has been flat in the last two quarters. We expect growth in this segment to double with this offer,” Sampath said.

The bank is now focusing on housing, mortgage and gold loan segment to boost its retail portfolio. “We expect our home loan and mortgage loan growth to be at about 15-18 per cent in FY13,” Sampath said.


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