New Delhi: The State Bank of India on 31 January locked housing loans at 8% for one year. The announcement came just a day before the acting finance minister Pranab Mukherjee met with public sector bank officials and nudged them to cut interest rates. State-owned banks said that they are willing to cut rates provided the cost of funds and inflation remain low.
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And in what could be a major blow to consumers, banks could charge an annual interest rate of up to 49% on credit cards for late payment. The Supreme Court on Tuesday stayed an order issued by consumer court that restrained banks from charging interest rates in excess of 30% per year from credit card holders. Citibank, HSBC, American Express Bank and Standard Chartered Bank had sought a stay on the commission’s order, saying placing a restriction on interest rates for delayed payment by card holders would lead to significant losses for banks.
Fraud hit Satyam got a CEO. A.S. Murty, a Satyam executive for 15 years, took charge of the company on Friday almost a month after the scam broke out. In a simultaneous development the Securities and Exchange Board of India (Sebi) finally got to grill Ramalinga Raju.
The second season of the Indian Premier League has acquired more glitter. Actress Shipla Shetty joined the long line of bollywood stars that own IPL teams. Shilpa Shetty and her UK based beau Raj Kundra forked out $15.4 million for an 11.7% stake in Rajasthan Royals. If the company were to be listed, it would have given best return compared to any other asset class. The Royals started as the underdogs last season and ended up winning the first Indian Premier League season.