Joining the group of banks offering discounts on retail loans for consumers to avail during the festive season, the public-sector bank Central Bank of India has decided to lower the rate of interest on specific retail loans by 25-50 basis points.
At the conference organised by the PHD Chamber of Commerce in New Delhi, the bank's Chairman and Managing Director M V Tanksale said, "We have decided to reduce the rate of interest on consumer loans for auto, consumer durables , education and a slab of the home loans between Rs. 30 lakh-75 lakh by 25-50 basis points."
The move is meant to fuel growth on the retail side. The offer is only applicable on certain financial products and not on the base rate. The announcement will be effective from 1 September 2012.
The Chairman was in Delhi to talk about increasing lending to Small and Medium Enterprises (SMEs). On the issue raised by K C Chakrabarty , Deputy Governor, Reserve Bank of India (RBI), on banks giving preferential treatment to the corporate sector in debt restructuring Tanksale said, "There are a couple of banks, including Central bank of India, who are not able to meet the 40% mark for priority sector lending, as directed by the RBI. We acknowledge that we have to redirect our focus towards SMEs and the priority sector lending to reach that level."