Kotak Bank cuts interest rates on home, car loans

After public sector banks, it is now the turn of private sector lenders to cut interest rates. Kotak Mahindra Bank cut interest rates on its retail loan products for the festival season.

The bank slashed its home loan rates by 13-20 basis points (bps), while the interest rate on car loans was cut by 25 bps. “Kotak does not publish a definite card rate but both the loans range in the 10.50 to 11 per cent range,” a bank official said. One bps is a hundredth of a percentage point.

During the first quarter ending June 30, car loans grew 17 per cent year-on-year at Rs 13,055 crore (from Rs 11,154 crore in the April-June quarter in 2012).

According to the Kotak official, this fiscal year so far, the overall retail growth has been slow. “In the second half of FY14, we expect the growth to be at around 15-20 per cent,” the official added.

Kotak Mahindra Bank’s retail loan grew 16 per cent in the fiscal year 2012-13.

In the first quarter, the retail loan portfolio of the bank grew 15 per cent to Rs 24,430 crore as on June 31, 2013.

Hyderabad bureau reports: Andhra Bank has reduced interest rates on retail loans.

According to a press release, the interests rates are 10.75 per cent (for car loans), 11.25 per cent (two-wheeler loans), 10.25 -10.50 per cent (home loans), 12.25 per cent (consumer loans) and 14.25 per cent (clean loans). The processing fee on these loans has also been waived up to January 31, the release said.

beena.parmar@thehindu.co.in

Source: thehindubusinessline