Mumbai: State Bank of India said on 28 June that equated monthly instalments (EMIs) on its home loans will be tweaked shortly as interest rates have gone up by 2% in the last one year.
“So far, we have resisted doing so but we will do so now,” SBI managing director Yogesh Agarwal told reporters here.
He, however, feared this may marginally push up the bank’s non-performing assets (NPAs) on home loans as it may impinge upon the capacity of borrowers to repay.
As far as any possible hike in rates, Agarwal said: “As of now there is no change. The bank was awaiting the RBI’s stance in the forthcoming quarterly review of its credit policy and would decide upon its rates accordingly.”
SBI Chairman O P Bhatt hastened to add that interest rates have virtually peaked and if at all there was any hike in the near future it could not be more than 0.25 per cent.