UTI Bank may raise home loan rate by 50 bps

UTI Bank may consider raising its home loan rates by at least 50 basis points to 9 per cent for its existing customers from July 1, a senior official said. The bank hiked home loan rates for its new customers by 50 basis points from May 2.

"We reset our loans every three months. For existing customers we raised the rates by 75 basis points to 8.5 per cent in April and we are funded for three months," said the official.

The large private sector bank benchmarks its home loan rates to its mortgage reference rate. "Our mortgage reference rate is 11.25 per cent," the official said.

UTI Bank's home loan portfolio comprises around 37 per cent of its retail loan basket and 12 per cent of its total loan portfolio.

The bank increased its prime lending rate by 100 basis points to 13 per cent in March. Apart from home loan rates, other loans are benchmarked to the prime lending rate.