 "BoB's festival offer: Home loans at 8.4%, 80-bps discount on personal loans")
With the aim of attracting more business during the festival months, public sector lender Bank of Baroda (BoB) will be offering a discount of up to 80 basis points (bps) on personal loans and home loans starting at 8.4 per cent. It expects a 25 per cent year-on-year (Y-o-Y) growth in its retail loan book.
The Mumbai-based lender has officially launched its festival campaign, titled ‘BoB Ke Sang Tyohaar Ki Umang’, which is set to run until December 31, 2023.
Debadatta Chand, managing director and chief executive officer of BoB, said, “We are already witnessing early signs of increased demand, with high-frequency indicators such as car sales and credit card spending reaching record highs.”
Retail credit offtake is expected to gain momentum during the third quarter of 2023-24 (FY24), coinciding with the peak of festival season purchases, and continue into the fourth quarter. The Y-o-Y growth is projected to follow the trend observed until April-June quarter of FY24, said Harshad Solanki, head-mortgages and other retail assets, BoB.
As of June, BoB’s retail loan book had expanded by 24.8 per cent Y-o-Y, reaching Rs 1.84 trillion. The home loan book, which makes up half of the retail portfolio, grew by 18.4 per cent Y-o-Y to Rs 99,976 crore by June.
The home loan book is expected to reach Rs 1.2 trillion by the end of March 2024. Automobile loans experienced a growth of 22.1 per cent, amounting to Rs 32,171 crore, while personal loans surged by 82.9 per cent, totalling Rs 22,042 crore by June 2022.
Baroda Car Loans start at 8.7 per cent per annum onwards, with no processing fees. Baroda Personal Loans start at 10.1 per cent per annum, offering a discount of up to 80 bps, with no processing fees and higher loan limits of up to Rs 20 lakh.