Home loan rates have seen a declining trend during the last one year, with rates slashed as many as three times by several banks, Parliament was informed today. | |
| "According to the reports received from public sector banks, the rates of interest on home loans have been reduced by several banks during the last one year," Finance Minister P Chidambaram said in a written reply to a question in Rajya Sabha. |
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| Further, in a reply to a query regarding regional rural banks (RRBs), he said the number of RRBs had reduced to 92 from 196 due to the amalgamation of RRBs sponsored by the same bank in a state. |
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| The number of loss-making RRBs had reduced to 15 in 2006-07 from 22 in 2005-06. Of these, seven have registered profit during the first half of the current year and the remaining four are likely to post profit by the end of the current financial year, he added. |
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| "The performance of RRBs has improved considerably as the percentage of their gross NPAs and net NPAs has reduced...The networth of RRBs as a whole has increased to Rs 4,545.86 crore as on March 31, 2007 from Rs 3,466.25 crore as on March 31, 2005," he told the upper house. |
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| In another reply, he said the government had no plans to establish any micro finance institution (MFI), though several such institutions in the private sector were operating across the country, providing micro credit services to the weaker sections namely artisans, craftsmen, among others. |
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| To another query, Minister of State for Finance Pawan Kumar Bansal said although such institutions were not currently regulated in the country, the data received from banks revealed that bank loans amounting to Rs 1,584.48 crore were outstanding against 550 MFIs as on March 31, 2007. |
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