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PSU banks won't raise rates, says Chidambaram

PSU banks won't raise rates, says Chidambaram

Apnaloan.com Research Bureau

02 May 2008

Following the Cash Reserve Ratio hike of 0.25 per cent, Indian Finance Minister, P Chidambaram has urged public-sector banks to withhold rate in increase. The CRR hike may not impact interest rates.

Currently, public sector banks account for around 70 per cent of India's banking business. The interest rates may head downward as the provisioning requirement for housing loans up to Rs. 30 lakh has been lowered.

Media reports say that home loans to individuals grew 16.44 per cent to Rs. 1, 48,489 crore at the end of March 2008, against Rs. 1, 27,522 crore a year ago.