SBI reduces interest on home loans further by 30bps

With an aim to offer attractive concessions to the home buyers, country's largest lender, State Bank of India (SBI) has offered further interest concession of upto 30 bps on home loans and 100 per cent waiver on processing fees.

"SBI, being a leader in home finance, will continue to make endeavours in reviving consumer sentiments and has been offering various offers on home loans from time to time," the lender said in a statement.

"SBI believes that it is important to offer better rates to customers displaying good repayment history." Accordingly, SBI home loan interest rates are linked to CIBIL score and start from 6.80 per cent for loans upto Rs 30 lakh and 6.95 per cent for loans above Rs 30 lakh. "Interest concessions up to 30 bps is also available in 8 metro cities for loans up to Rs 5 crore,"said the statement.

SBI Raises $600 million 

On Thursday, SBI said it has raised $600 million of "Regulation S" bonds at a coupon rate of 1.80 per cent. Accordingly, the bank, acting through its London Branch, raised the sum for bonds benchmarked against the 5 year US Treasury and priced at a spread of 140 bps over the benchmark.

"The bonds will be listed on SGX-ST and India INX. The issuance represented SBI's return to the international public bond markets after a gap of close to 2 years," the statement said. "The transaction was well received and saw strong interest from investors across geographies with a final order book in excess of $1.9 billion."

As per the bank, on the back of strong demand, the price guidance was revised from "T+175 bps area to T+140 bps", with a peak orderbook of $2.1 billion resulting in final pricing at the tight end of the range.

"The Notes are expected to carry a final rating of Baa3, BBB- and BBB- from Moody's, Standard and Poor's and Fitch respectively," the statement said. "BofA Securities, Citigroup, HSBC, J.P. Morgan, MUFG, SBICAP and Standard Chartered Bank were the Joint Bookrunners for this offering."