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Housing loan barrowers not to get risk weightage benefits

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According to the sources available to www.propertykhazana.com, RBI has turned in peril weightage on home loans up to Rs. 20 Lakhs to 50% from the present 75%. As the bankers appear mystified about passing the benefits of lesser risk peril to clients, there is no sign of respite for the housing loan borrower. But, they can anticipate gaining some of the profits if not all, said Vishakha Mulye, Chief Financial Officer of ICICI Bank. He further said on the theory of risk weight that, it is a major part of return on equity. Lending prices is the purpose of value of funds and return on equity, the drop in the risk weight will surely assist to save on capital to a big extent and thus by bringing profits for the banking system.
Sangeet Shukla, Chief General Manager for Personal Banking, State Bank of India said to www.propertykhazana.com that, now it is the time for the banks’ to take entity decisions and lately the rise on the interest prices were big. However, the clients were not given the full cost, so the reason some of the amendments were done before taking the last decision. Later, the outlook of Union Bank of India came out stating that not surpassing the interest rates on loans up to 20 Lakhs, so for this reason they did not see any case for any reduction in prices.
Source: NIMMA BENGALURU

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