The Bank of Maharashtra (BoM) has cut its home loan rates by 15 basis points to 8.35 per cent. The announcement came on Wednesday in a statement that also noted that the bank has also waived processing fees on home loans. Soon after the statement was released, the shares of BoM closed 4.20 per cent higher at Rs 47.35 each on BSE on Wednesday, January 3, 2024.
The decision to provide the dual benefit of reduced interest rates and waiver of processing fees in home loans appears to have struck a chord with the potential customers.
In a statement, the bank said, “In the current high-interest rate landscape, the bank is making retail loans cheaper to bring in cheer among customers.” The state-run bank, by introducing this offer, is offering one of the lowest interest rates in the banking industry for home loans. The statement further read that the “bank has already waived processing fees for home, car, and retail gold loans under its ‘New Year Dhamaka offer’.”
According to an update filed with the markets regarding the business on January 2, the bank witnessed a growth of 18.92 per cent year-on-year in its business, thereby hitting Rs 4.34 lakh crore for the quarter that ended on December 31, 2023.
The development came after the bank saw a 17.9 per cent increase in deposits, which makes a total of Rs 2.46 lakh crore. The increase can also be attributed to the 20.3 per cent increase in gross advances, which took the total value to Rs 1.89 lakh crore.
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