The benchmark banking index, Bankex, has been brought down 7.5% this week on fears that the infrastructure loans given out by banks may go bad. But veteran bankers say, the bigger time bomb for the lenders may be teaser home loans, CNBC-TV18's Gopika Gopakumar and Latha Venkatesh report.
Big bankers fear that borrowers, who had taken teaser home loans at lower interest rates two years ago, may start to default, as their EMIs have risen by almost 50%. Interest rate which was 8% earlier is now 12-13%.
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