No rise foreseen in home loans

MANGALORE: There would be no immediate rise in interest pertaining to the home loan segment, said Cherian Varghese, chairman and MD, Corporation Bank. Answering queries from the media, Cherian said there was excess liquidity of nearly Rs 60,000 crores. "Unless the credit rate picks up or the global interest rates move up causing a ripple effect", Cherain said there was no reason why the interest rates should not stay stable at the present rates.He also said the Bank is initiating steps for accelerated growth in agricultural advances which is a good business for the banking sector in view of the relatively better yields and lesser non performing assets in this segment. He said the farm sector lending, both direct and indirect, was about Rs 1,115 crores. Cherian said as corporate sector was asking for finer pricing taking the interest rates to ridiculously low levels, the arm sector was thought as good business as interest rates were marginally higher and offered better spread. On making the bank more visible in the media, Cherian said there were complaints from the shareholders that despite being a top bank in the country, many were aware of this status. He said last year the adspend was Rs 9.5 crores, indicating that it was much higher this year. On establishing the bank's presence on a global plat for, Cherian said they had engaged Boston Consultancy Group to advise the bank on brand building, revamping the present system and changes that need to be undertaken in the business and transaction processes.