BoI hikes home loan rates

MUMBAI: Bank of India on Tuesday announced a hike in home loan rates and benchmark prime lending rate, while increasing the rate of returns on NRI deposits to balance the cost on funding resources.
    
The revised rates have come into effect from May 1.

 

The bank increased interest rates for home loans by 50 basis points or half a percentage under its floating rate scheme, it said.

 

The loans for up to five years will now incur an interest rate of 8 per cent per annum, for 5-10 year duration it will be 8.5 per cent per annum and for loans over 10 years, it is 9 per cent per annum.

 

The corresponding interest rates on fixed interest scheme will be 9.25 per cent, 10 per cent and 10 per cent respectively.

 

Further, the bank increased its BPLR by 50 basis points or half a percentage to 11.25 per cent.

 

On the deposit side, BoI revised upwards the interest rates on Non Resident External deposits for long term.

 

While deposits from one to less than two years and two to less than three years remain unchanged at 6.30 per cent per annum, the deposits for three years and above will now receive a higher interest rate of 6.40 per cent, instead of 6.30 per cent.

 

The bank also revised the rate of interest on Foreign Currency Non Resident deposits in denominations of the United States dollar, Great Britain pound, Euro, and Canadian and Australian dollars.
     
As per revised rates, deposits in USD from one year to less than two years the interest will 5.33 per cent up from 5.29 per cent, two to less than three years 5.34 per cent, three to less than four years 5.35 per cent, four years to less than five years 5.39 per cent and maximum five years at 5.43 per cent.

 

Bank of Baroda also hiked its interest rates on Non Resident Indian term deposits with effect from May 1.
    
The bank had in April revised its interest rates upward and this is the second hike in less than a month's time.

 

As per the revision, interest rates on Non Resident External (NRE) term deposits of one to less than two years are 6.33 per cent, two to less than three years are 6.34 per cent, three to less than four years are 6.35 per cent, four to less than five years are 6.35 per cent and for five years too it will be 6.35 per cent, the bank stated.
    
Foreign Currency Non Resident deposits in the denomination of United States dollars for one year to less than two years will attract higher rate of interest of 5.33 per cent, for two years to less than three years 5.34 per cent, three years to less than four years 5.35 per cent, four years to less than five years 5.39 per cent and for deposits of five years the rate of interest will now be 5.43 per cent, the bank added.
   
Similar, revisions have been made in deposit rates in denominations of the euro, pound, yen, Canadian and Australian dollars.

Andhra Bank also raised its prime lending rates by 0.5 per cent in its home loan rates.

 

In the last three days, country's largest bank State Bank of India, Punjab National Bank, Overseas Bank of Commerce, Bank of Baroda and Union Bank of India have increased their lending rates to overcome the increased pressure on the cost of funding resources majorly in the range of 0.25 per cent to 0.5 per cent.

 

HDFC Ltd too hiked lending rates on its new loans from 50 to 75 basis points with a 50 basis points increase in PLR.
    
Banks including the State Bank of India, Punjab National Bank, Union Bank of India, Bank of India, ICICI Bank, Dena Bank and Central Bank of India have revised upwards their deposit rates in selective segments of domestic as well as Non Resident Indian term deposits in a similar range.