PSU to hold home loan rate hikePublic sector banks seem to be holding back the rate hike for the fear of loan defaults.
05 Aug 2008
Public sector banks seem to be holding back the rate hike for the fear of loan defaults. Banks were expected to hike their Prime Lending Rates (PLR) following the hike of cash reserve ratio (CRR) by 25 basis points and the repo rate by 50 basis points.
Some banks such as Punjab National Bank, IDBI Bank and Punjab & Sind Bank have increased prime lending rates. Central Bank of India has announced a hike, but it is yet to be brought into effect. Oriental Bank of Commerce and Bank of India have only raised the deposit rate for certain maturities.