Karnataka Bank has slashed housing loan interest rate by up to 0.40 per cent from June 1. "With this reduction, now the interest rate on housing loans up to Rs 75 lakh will be 8.60 per cent per annum, and the interest rate on housing loans above Rs 75 lakh and up to Rs 5 crore will be 8.90 per cent per annum," the bank said in a regulatory filing.
The rate cut along with the expected reduction in prices of houses upon implementation of GST will benefit customers and will boost the demand for the housing sector, said Mahabaleshwara M S, Managing Director & CEO, Karnataka Bank.
The private sector bank has a total of 769 branches across the country and 1,400 ATM locations besides 110 e- lobbies.
The bank aims to generate a business turnover of Rs 1.1 lakh crore for the current fiscal. The stock of the bank traded 1.40 per cent down at Rs 176.45 on BSE.