Interest cut rate on the affordable housing segment was taken by the State Bank of India in order to pass on the benefits to the customers, said Arijit Basu, managing director of the bank.
The bank cut interest rates on the affordable housing segment on Friday. Rates for home loans up to Rs 30 lakh is now at 8.7 percent versus 8.75 percent last quarter.
In an interview with CNBC-TV18, Basu said, “As you know SBI’s core housing loan book is supported by customers in affordable housing segment and the bank wanted to pass on the benefits to them. The bank already has lower rates compared to the market and wanted to give a further boost to this segment," he said.
This would mean that the home loan portfolio of the bank, which is the largest, would continue to grow smoothly, he added.