Teaser Loans Risk-Free
The best time in State Bank of India Chairman Om Prakash Bhatt has said that his 8 percent teaser home loan scheme is entirely valid – without risk to the system, bank or customer. The RBI has sought to appeals by banks for such loans, but Bhatt sees no logic in question, particularly because the regime is completely transparent, and this would adversely affect its Bottom Line and bank share prices. Bhatt, who took the reins of the SBI in June 2005 as a surprising choice of the government, told select media persons here that the teaser loans attracted customers 2,92,000 in 2009-10.
That’s after launched in early 2009; it offered Rs 20,000 core advanced to a slowing economy was indirectly affected by the global financial crisis. The RBI has asked all banks to set aside 70 percent of their gross non-performing assets for provisioning, but the SBI has not done it so far. For the quarter ended-December 2010, the provisioning coverage ratio was 54 percent. The chairman said the housing loan scheme is assessed at the end of each quarter. He hinted that the scheme be extended for another three months, where it is for review in March, The next president can decide what to do than in June.
