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.
India’s largest private sector lender ICICI Bank on Thursday launched a home loan product that offers the benefit of repaying loans at fixed rate in the first one to two years. In a rising interest rate scenario, the product apparently looks attractive as it freezes the interest rates for two years.
State Bank of India shares were up 1.5% on Thursday, a day after the bank said it was discontinuing its teaser home loans from May 1.