Home loan to cost more
WITH THE RBI signaling a quarter per cent increase in the short-term interest rate, home loan interest rates are expected to go up by 0.25 per cent to 0.50 per cent.
WITH THE RBI signaling a quarter per cent increase in the short-term interest rate, home loan interest rates are expected to go up by 0.25 per cent to 0.50 per cent.
Since there is already pressure on the deposit rate after the redemption of India Millennium Deposit (IMD) of Rs 30,000 crore, bankers feel short-term rates are bound to go up in the medium term as there is pressure on the cost of deposits.
ICICI Bank executive director Chanda Kochar agreed that there is an upward bias on interest rates. "We will watch the scenario for sometime before taking a decision," she said.
Punjab National Bank chairman and managing director S.P. Gupta said there is pressure on the deposit rate. "However, PNB does not intend to increase its lending rate till March 31. After that we will evaluate the scenario," he said.