Corporation Bank cuts home loan rates

Corporation Bank cuts home loan rates

BS Reporter / Bangalore July 19, 2007

Mangalore-based Corporation Bank, on the back of easy liquidity and stagnant home loan portfolio, has decided to reduce interest on fresh floating rate home loans by 25 basis points.

The 100-150 basis points increase in the bank's home loan rates for varying tenures over the last one year had stunted the growth of its portfolio in the first quarter of the current fiscal. The bank's home loan portfolio stood at Rs 3,510 crore at the end of June 2007. The bank added only Rs 19 crore to the portfolio in the first quarter of FY08.

The bank has reduced rates on fresh home loans of 5-15 year maturity by 25 basis points. Following this, the bank is offering home loans up to Rs 20 lakh at 10.25% and above Rs 20 lakh at 11.25%. The bank