Oct 01, 2013, 04.35 PM | Source: CNBC-TV18
In an interview to CNBC-TV18, VR Iyer, CMD, Bank of Indian spoke about home loan and rate of interest.
“ We have hiked the rate of interest on advances from September 2 but we have not increased any rate of interest on the deposit side. ”
- VR Iyer (CMD)
Below is an edited transcript of the interview.
Q: Does Bank of India has this kind of schemes?
A: No, we do not encourage this type of schemes.
Q: Do you have even one of them. You may not encourage but you may have them because builders are offering them everywhere?
A: I do not whether earlier the schemes were there in place. I need to check up on that.
Q: Is there a flip problem that when this is withdrawn some builders could default? Do you fear a marginal increase in real estate defaults?
A: The builders should not default. Actually, these types of loans are given to well-established players in the market. It is not given to all the real estate developers. The well-established and who have a proven track record then these types are loans are encouraged in the banking industry.
Q: Has there been reportage of wrong utilisation of funds by the builders with regards to this scheme?
A: No, there has been no report. Of course, I need to check with the banking industry phenomena and I do not have enough data to comment on this.
Q: How much of these loans have you seen the past two years, for example out of the entire property segment that maybe a bank has, how much of the loans comprised of such an 80:20 scheme?
A: I need to go back to the database and I have to work out on that.
Q: Now it looks like interest rates are going to stay on where they are for a goodish bit. When are you hiking base rates?
A: We have hiked the rate of interest on advances from September 2 but we have not increased any rate of interest on the deposit side because as of now we are still comfortable with but we will look into it sooner.
Bank of India stock price
On February 05, 2016, Bank Of India closed at Rs 97.80, up Rs 4.55, or 4.88 percent. The 52-week high of the share was Rs 260.85 and the 52-week low was Rs 90.10.
The latest book value of the company is Rs 389.12 per share. At current value, the price-to-book value of the company was 0.25.
Hong Kong eyes strengthening business ties with India
"India is Hong Kong's seventh-largest trading part
Bank of India acquires 49% stake from BSE in BOI Shareholding
BOI Shareholding Ltd was established in 1989 as an
Sell Bank of India, Syndicate Bank: Chandan Taparia
Chandan Taparia of Anand Rathi Securities recommen
Bank of India allots shares worth Rs 264 crore to LIC
"The bank has allotted 2 crore equity shares to Li
Bank of India allots 2cr equity shares to LIC of India on preferential basis
Bank of India has allotted 2,00,00,000 Equity Shar
BoI raises Rs 3,000 cr via Basel-III complaint bonds
"Bank has raised Rs 3,000 crore by issue of Basel-
Vijaya Bank standalone Dec '15 NII at Rs 737.70 crore
Standalone Net Interest Income (NII) for the quart
De Nora India standalone Dec '15 sales at Rs 9.06 crore
De Nora India has reported a sales total income fr