Page 25 - BANKING FINANCE November 2015 ONLINE

PRESS RELEASE

Bandhan Bank views on today's RBI's rate cut

A pro-growth policy
"The Reserve Bank of India governor Dr Raghuram Rajan has surprised the market
by announcing a 50 basis points cut in the repo rate to 6.75%. We could not have
asked for more. He has frontloaded the rate cut and committed to continue with an
accommodative monetary policy. This will certainly work as a booster dose for
economic growth.

In his press conference, after unveiling the policy, the governor spoke about discussing
with the government the small savings rates. If indeed the government decides to
cut the small savings rates, the banks will be in a better position to cut deposit rates and that will lead to faster transmission
of the monetary policy. In other words, the banks will be able to cut the loan rates faster.

With this, we have 125 basis points rate cut since January. Following this, we will see lower loan rate, higher credit
growth and, of course, higher growth in gross domestic product" the bank quoted.

Reduction in Rate of Interest of Individual Housing Loans
under HUDCO Niwas at 9.75%

Housing & Urban Development Corporation Ltd. (HUDCO), a Govt. of India Enterprise, have
substantially reduced the rate of interest for its Individual Housing Loan Scheme-HUDCO Niwas
to 9.75% (floating) for loans upto Rs. 50.00 Lakh and to 9.80% (floating) for loans between Rs.
50-100 Lakh which is the lowest Rate of Interest among all Banks/HFIs. With the above reduction
borrower will be able to save around Rs. 1.70 Lakh per Rs. 20.00 Lakh loan over a period of 25
years. Additionally, HUDCO is not charging any processing fee and also providing free accidental
insurance to its housing loan borrowers.

Further, the interest rate for bulk loan to Housing Finance Companies (HFCs), of Govt. Banks/
Public Agencies/Govt. Financial Institutions have also been reduced to 9.80% (floating) p.a.

HUDCO has also been identified as one of the Central Nodal Agency (CNA) to channelize the Credit Linked Subsidy to
Banks/HFIs etc. for Govt. of India's ambitious and prestigious programme "Pradhan Mantri Awas Yojana (PMAY)", a Mission
to provide "Housing for All by 2022" in the country. The Mission will be implemented through four verticals, which inter
alia includes Affordable Housing through Credit Linked Subsidy Scheme (CLSS). Under this, interest subsidy of 6.5% is
available on the housing loans, which may be availed by the beneficiaries having an annual income upto `6.00 Lakh. This
subsidy would be provided on the loan component to the maximum extent of Rs. 6.00 lakhs. Accordingly, the borrower
will get a subsidy of Rs.2.20 Lakh for loan tenure of 15 years, which will be adjusted against their outstanding loan. The
programme is aimed to provide shelter to the masses, specifically to the Weaker / Vulnerable sections of the society.

Clean Ganga Project

UCO Bank under CSR presented a DD of Rs. 50 lacs to "Clean Ganga Project"
of Government of India. Seen in the photo are Mr Shashi Shekar IAS Secretary,
Ministry of Water Resources, River Development, Ganga Rejuvenation,
Government of India receiving the DD from Mr. R Seetharama , General
Manager and Circle Head UCO Bank New Delhi and Mr. Niranjan Rath, Zonal
Manager, New Delhi.

BANKING FINANCE | NOVEMBER | 2015 | 25

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