Deutsche Postbank Cuts Home Loan PLR.

Deutsche Postbank Home Finance Limited has reduced HBLR by 50 basis points for existing and as well as new customers. With this, the rates of interest on home loans of all existing variable-rate customers would come down by 0.5 percent. While the new rates will come into effect from 7th January 2009 for new customers, the reset date for existing customers shall be 1st March 2009, in order to accommodate implementation across the entire customer database.
DPHFL has recently gone for an ECB of 27 million Euros from its parent Company, Deutsche Postbank, AG, Germany, post relaxation of RBI ECB norms. This, along with the National Housing Bank s special Repo Window for HFCs have positively impacted DPHFL s cost of funds, which has been promptly passed on to its 29 thousand strong customer base.

The Company, which has one of the lowest NPAs in the industry is assigned credit rating of "P1+" by CRISIL and "LAA+" by ICRA and Fitch. With the strong parentage and support of its parent Company, Deutsche Postbank Home Finance Limited is aiming towards becoming a leading player in mortgage finance market.

Deutsche Postbank Home Finance Ltd has grown continuously in the past five years in India to become one of the fastest growing housing finance companies in the country. In the half year ended Sept. 2008, the Company has exhibited an impressive financial performance. The portfolio as on 30th Sept. 2008 stands at Rs 3581 crores, having grown from Rs 2508 crores as on 30th Sept. 2007. The company has a network of 40 branches and satellite offices across India, ensuring door step accessibility in almost all the major urban hubs.

The State Bank of Travancore offers online home loan at 8% interest

The State Bank of Travancore has given a double boost to the sagging home loan business, offering home loans at 8% for one year as against the current rate of 10.25%, and offering home loan applications on the net.

SBT managing director A K Jagannathan said here that the twin moves were expected to provide a shot in the arm for the bank’s home loan business as well as giving a stimulus to the housing sector.

In addition, the bank will offer car loans
to customers at 10% for one year, as against the existing rate of 11.5%. Mr Jagannathan said the special interest rates for one year would revert to the existing rate after the term, and the new rates would depend on the prime lending rates existing at that time.

He said SBT was working on strategic initiatives and new businesses and was aspiring to be one of the top five banks in the country. Towards this end, mobile banking business was also on the bank’s radar, he said.

SBT is the leader in Kerala in NRI remittances and the bank has so far recorded remittances to the tune of Rs 13,000 crore this fiscal. Mr Jagannathan said SBT was also the fourth largest among banks in the country in the car loan portfolio.

The bank has tied up with Avenues India for e-commerce facilities, which will enable its customers to be connected to over 2,500 e-merchants across the country and conduct transactions in a safe and secure manner.

SBT’s net profit for the first three quarters of 2008-09 was Rs 415.81 crore, as against Rs 236.91 crore in the corresponding period of the previous year. The total business of the bank crossed the Rs 71,000 crore milestone at the end of the third quarter.

Read More From:Economic.indiatimes.com