Mangalore-headquartered public sector lender Corporation Bank has launched a ‘festival bonanza offer’ which includes home loans and vehicle loans at floating rates in the initial years along with an offer of higher deposit rates for savings with the bank.
“In oder 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 said 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’ in the home loan segment that will provide loans up to Rs 30 lakh under a floating tenor. While it will charge 7.75 per cent for the first year, the interest rates will be 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 offer an interest rate of eight per cent for the first year and 50 per cent of administrative charges will be waived for the customers. These two offers are valid up to December, 2010.
The bank has also announced higher deposit rates in the savings account segment for the depositors.
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Corporation bank will offer seven per cent interest under its short-term deposit rate scheme ‘Corp Diamond’ that is 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 also 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 units of Rs 1,000 each.
Corporation bank posted 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 a year earlier.
The bank’s net interest income, 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.