IDBI Bank Reduces Floating Interest Rates on Home Loans

OREANDA-NEWS. November 12, 2012. IDBI Bank has decided to reduce its interest rates on new floating rate Home Loans above Rs. 30 lakh by a further 25 basis points (bps). Loans up to Rs. 75 lacs would now be available at Base Rate (BR) - currently at 10.50% p.a- while on such loans above Rs. 75 lakh, the pricing would be Base Rate (BR) plus 25 bps. Further, interest on Home Loan Interest Saver (HLIS) product would go down by 25 bps across all loan slabs, subject to minimum of Base Rate. The revised rates will come into effect from November 1, 2012. These reductions come close on the heels of downward revision effected in the same products only recently, in September 2012.

The Bank has also decided to reduce the Retail Term Deposit Rates by between 25-50 bps in seven maturity buckets having maturity of ‘270 days up to 20 years’. Effective November 1, 2012, the revised interest rates on Retail Term Deposits will be as under:

Incidentally, the Bank had introduced a new maturity bucket "above 10 years up to 20 years” for deposits up to Rs. 1 crore, effective October 1, 2012, arguably the first PSU Bank to do so, to meet specific business requirements, subject to certain conditions.

IDBI Bank is the youngest, new generation, public sector universal bank that rides on a cutting edge core banking Information Technology platform. This enables the Bank to offer personalized banking and financial solutions to its clients through its 998 branches and 1592 ATMs. The Bank had an aggregate balance sheet size of Rs. 2,63,535 crore and total business of Rs 3,46,457 crore as on September 30, 2012. IDBI Bank's operations during the quarter ended September 30, 2012 resulted in a net profit of Rs. 484 Crore. The Bank’s operations during the last full financial year (2011-12) had yielded a net profit of Rs. 2032 crore.