Corporation Bank has launched a ‘festival bonanza offer’ which includes home loans and vehicle loans at floating rates in the first few years along with an offer of higher deposit rates for savings with the bank.
“In order to boost the credit growth along with emphasis on retail lending segment, we have launched this offer and are hopeful of receiving good response from consumers,” Ramnath Pradeep, chairman and managing director of Corporation Bank said here. He also announced that the bank was likely to disburse around Rs 1,000 crore in the retail lending segment under these offers.
As per these offers, the bank has launched a ‘Corp Home Smart’ for the home loan segment that will provide loans up to Rs 30 lakh under a floating theme. It will charge 7.75 per cent for the first year, the interest rates will go up to 8.25 per cent for the next two years. The rates will be one per cent higher than the base rate for the subsequent period.
In the vehicle loan segment, the bank will give an interest rate of 8 per cent for the first year and 50 per cent of administrative charges will be waived for the customers.
Both these offers are valid up to December, 2010. The bank also announced higher deposit rates in the savings account segment for the depositors. Corporation bank has also announced about its offer of seven per cent interest under its short-term deposit rate scheme ‘Corp Diamond’ which will last for a period of 275 days.
“This interest rate is applicable starting from a minimum amount of Rs 500 in rural and semi-urban areas and Rs 1,000 in case of urban region,” Pradeep said. The bank has reduced the average quarterly balance amount to Rs 15,000 from Rs 25,000 for the ‘Corp Classic Account’.
The depositors having surplus over Rs 15,000 will be converted into term deposits in a unit of Rs 1,000 each. Corporation bank declared a 28 per cent rise in its net profit to Rs 333.78 crore during April-June period of this financial year as compared to the same period last year. The bank’s net interest income which is one of the major parameter of bank’s core earnings also grew by 49 per cent to Rs 659.59 crore during the same period.
