Bank of India (BoI) today hinted at an increase in short-term lending rates for corporates, soon after the redemption of $5.5 billion of India Millennium Deposits (IMDs) on December 29, 2005. | |
| The redemption of State Bank of India's IMDs would impact liquidity in the system and BoI would review lending rates after redemption of IMDs, chairman, M Balachandran said. |
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| The US Federal Reserve is expected to carry on with its rate increases, further putting an upward pressure on domestic rates. |
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| Balachandran, however, clarified that lending rates for infrastructure and projects would continue to remain 'soft'. |
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| Referring to home loans growth, he said bank's housing loan portfolio was about Rs 3,024 crore. It is expected to grow annually at 38- 40 per cent in the next few years. |
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| About one lakh customers have availed of home loans from BoI and 25,000 new home loan customers would be added in the next one year. |
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| He was talking to reporters at the announcement of a tie-up with ICICI Prudential Life Insurance to provide mortgage term assurance cover to bank's home loan customer. This product will cover outstanding loan amount in the event of unfortunate death of a borrower. |
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