Can't match home loan rates with BoB: United Bank of India

UBI reduced MCLR between 60-90 basis points across tenures, effective from January 6

Kolkata-based United Bank of India has mopped up close to Rs 10,000 crore as deposits after demonetisation. 

The bank reduced the marginal cost of funds based lending rate (MCLR) between 60-90 basis points across tenures, effective from January 6. However, the bank does not expect to match the home loan rates with Bank of Baroda, which is offering the lowest rate of interest in the home loan segment. 

“Reduction by Bank of Baroda is on the very high side. It depends on individual bank, but we don’t see we can match that. Our home loan rate is 8.80 per cent. We are yet to see demand to pick up, although there is a lot of demand in tier-II and -III cities for home loans below Rs 20 lakh,” said Pawan Bajaj, MD and CEO, United Bank of India.