State Bank of India to hold home loan rates

Kolkata: "Home loan rates will remain as they are," stated Arundhati Bhattacharya , Chairperson and Managing Director of State Bank of India at IIM Calcutta's 49th convocation.

A lowering of borrowing limit is likely to translate into increase in cost of funds for the banks."Cost of funds will go up but we are not considering any hike in the home loan rates," stated Bhattacharya

The Reserve Bank of India (RBI) on Tuesday kept policy rates unchanged but lowered the borrowing limit for the banks from the overnight facility. Some of the banks like the Indian Bank have increased base rates marginally a few days back.

The bank was open to any idea for reaching a solution regarding Haldia Petrochemicals."We are trying to work out a solution and we are open to any idea that gives us a solution," added Bhattacharya.

Earlier, Bhattacharya had said that the HPL asset will not turn bad. The troubled company has a potential of very good profitability if it runs at more than 80 per cent capacity. The company is facing financial crunch for long and is on the verge of knocking the doors of Board of Financial Reconstruction.