MUMBAI: Amid concerns expressed by the Reserve Bank, country's largest lender State Bank of India (SBI) on Wednesday announced withdrawal of special home loan schemes, or teaser rates, with effect from May 1. SBI Easy Home Loan and SBI Advantage Home Loan (teaser rate products) will be replaced by floating interest rate schemes on par with other commercial banks. Under the teaser home loan scheme, SBI was offering lower rate of interest of 8-8.5 per cent for the first three years. It invited severe criticism from RBI, which had said the scheme could impact the asset quality of SBI's home loan portfolio. The withdrawal of teaser rates comes within a month of the new chairman Pratip Chaudhuri taking charge at SBI. The home loan from SBI will now attract an interest rate of 9.5 per cent to 10.25 per cent depending upon the loan amount, SBI said. SBI has also launched the SBI Advantage Car loan Scheme, under which credit would be provided at 10.75 per cent for a maximum period of 7 years.

NEW DELHI: Gold crossed the psychological Rs 22,000 mark today on aggressive buying by stockists, amid a rising global trend. It rose by Rs 115 to Rs 22,060 per 10 grams. Silver also climbed to a new high and rose by Rs 1,850 to Rs 66,300 per kg on rising demand from industrial units.

Silver coins followed suit and shot up by Rs 1,500 to a record high of Rs 72,000 for buying and Rs 72,500 for selling of 100 pieces.

Trading sentiments remained bullish as gold extended its record-making rally to top USD 1,500 an ounce in global markets as dollar fell on mounting debt in Europe and the US, prompting investors to seek bullion as a store of value.

In international markets, gold climbed 0.3% to USD 1,500.43 an ounce and silver jumped 0.9% to a 31-year peak of USD 44.35 an ounce.

Besides, retail customers and jewellers buying for the coming marriage season further fuelled the uptrend.

On the domestic front, gold of 99.9 and 99.5% purity shot up by Rs 115 each to a new high of Rs 22,060 and Rs 21,940 per 10 grams, respectively.

Sovereigns also moved up by Rs 100 to fresh peak level of Rs 18,000 per piece of eight grams.

Silver continued its record setting spree and spurted by Rs 1,850 to new peak level of Rs 66,300 per kg and weekly-based delivery by Rs 1,530 to Rs 65,055 per kg.

name-deepak kumar jha
pgdm 2nd sem (2010-12)