What prompts banks to cut home loan rates in India?
Tuesday, December 31, 2013
With hardly any signs of demand picking up from the corporate world, banks are rushing to tap the home loan market by reducing rates even though their cost of funds haven’t gone down.
“We are flush with funds and need to deploy them profitably. Liquidity has been building up over a period of time,” said A Krishna Kumar, Managing Director (Group Executive – National Banking) at SBI. “It will take time to understand the impact of rate cuts on the cost of funds,” he added.