State Bank Of India

State Bank of India (SBI), country's largest public sector lender has decided to remove pre-payment charges on home loans, giving some relief to borrowers who want to foreclose their accounts. Earlier bank has been charging 2-4% of the outstanding amount as pre-payment penalties only on housing loans with floating interest rates taken before May 2011.

At the end of September the total outstanding home loan of SBI rose to Rs 92,383 crore against Rs 86,769 crore in March 2011. No pre-payment fine is charged if borrowers pay using their own funds.

The bank’s net profit for the quarter has registered growth of 12.36% at Rs 2,810.43 crore whereas the same was at Rs 2,501.37 crore for the quarter ended September 30, 2010.  Bank’s total income has increased by 23.44% at Rs 29,394.32 crore for the quarter under review whereas the same was at Rs 23,813.30 crore for the corresponding of the previous fiscal.