Central Bank of India has planned not to claim pre-payment penalties on floating rate housing loans, irrespective of the source of funds of the borrowers with immediate effect as per the Reserve Bank of India’s suggestion.
This waiver will be for both new as well as existing borrowers. The bank has already waived pre-payment penalty on foreclosures where the borrowers were making payments from their own sources.
The bank’s net profit for the second quarter of the current fiscal has declined 35.62% at Rs 244.25 crore as compared to Rs 379.38 crore for the corresponding quarter of the last year. The bank’s total income has surged 34.56% at Rs 5234.05 crore for the quarter under review as compared to Rs 3889.84 crore for the second quarter of the previous year.
