Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
SBI today announced the withdrawal of its 'special/teaser' home loan and the existing auto loan
product. The bank w.e.f 1 May 2011, will roll out a new base rate linked home and auto loan
product. The incremental standard provision on existing special home loans, if directed by RBI,
will be about Rs 5.9bn in 4QFY11.
Base rate linked (floating) new home loan product w.e.f 1 May 2011
Under the new scheme, the interest rate on home loans up to Rs 3mn will be base rate (8.5%
currently) + 100bps; interest rate on home loans above Rs 3mn and up to Rs 7.5mn will be
base rate + 125 bps and interest rate on home loans above Rs 7.5mn will base rate +
175bps.
The bank stated that it will now charge processing fees only after the home loan has been
sanctioned.
Note, according to management, the interest rate under the "old special/teaser home loan
scheme" taking in to account the current base rate would have been 9% for the 1st year,
9.75% for the second and third year and 10% from fourth year onwards.
According to management, the bank's new home loan pricing is competitive and will not have
an impact on the bank's home loan business growth. Further, it added that the impact on
spreads due to the revised interest rate structure is neutral.
Base rate linked (floating) new auto loan product w.e.f 1 May 2011
The interest rate on auto loans will be base rate (8.5% currently) + 225bps for a period of 84
months
The bank stated that it will now not charge any prepayment charges in case of auto loans.
Incremental standard provisioning requirement
According to management, the loan book under the 8% special home loan scheme is about
Rs 368bn currently and an additional 160 bps (2.0%-0.4%) standard provisioning (as required
under the new regulations) works out to about Rs 5.9bn.
According to management, the bank is still in discussion with RBI on this matter. It further
added that if RBI finally requires SBI to make the incremental standard provision on the
existing special home loans, the bank will have to provide Rs 5.9bn in 4QFY11.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
SBI today announced the withdrawal of its 'special/teaser' home loan and the existing auto loan
product. The bank w.e.f 1 May 2011, will roll out a new base rate linked home and auto loan
product. The incremental standard provision on existing special home loans, if directed by RBI,
will be about Rs 5.9bn in 4QFY11.
Base rate linked (floating) new home loan product w.e.f 1 May 2011
Under the new scheme, the interest rate on home loans up to Rs 3mn will be base rate (8.5%
currently) + 100bps; interest rate on home loans above Rs 3mn and up to Rs 7.5mn will be
base rate + 125 bps and interest rate on home loans above Rs 7.5mn will base rate +
175bps.
The bank stated that it will now charge processing fees only after the home loan has been
sanctioned.
Note, according to management, the interest rate under the "old special/teaser home loan
scheme" taking in to account the current base rate would have been 9% for the 1st year,
9.75% for the second and third year and 10% from fourth year onwards.
According to management, the bank's new home loan pricing is competitive and will not have
an impact on the bank's home loan business growth. Further, it added that the impact on
spreads due to the revised interest rate structure is neutral.
Base rate linked (floating) new auto loan product w.e.f 1 May 2011
The interest rate on auto loans will be base rate (8.5% currently) + 225bps for a period of 84
months
The bank stated that it will now not charge any prepayment charges in case of auto loans.
Incremental standard provisioning requirement
According to management, the loan book under the 8% special home loan scheme is about
Rs 368bn currently and an additional 160 bps (2.0%-0.4%) standard provisioning (as required
under the new regulations) works out to about Rs 5.9bn.
According to management, the bank is still in discussion with RBI on this matter. It further
added that if RBI finally requires SBI to make the incremental standard provision on the
existing special home loans, the bank will have to provide Rs 5.9bn in 4QFY11.
No comments:
Post a Comment