Bank of Maharashtra cuts home loan rate by 15 bps to 8.35%, stock jumps over 4.2%

As part of its New Year offer to consumers, the Bank of Maharashtra (BoM) cut its house loan rate by 15 basis points to 8.35 per cent on Wednesday, January 3, 2024.

According to a BoM statement, the bank has also waived off processing fees on home loans.

Meanwhile, on the back of the news, shares of BoM closed 4.20 per cent higher at Rs 47.35 each on BSE on Wednesday, January 3, 2024.

This combined advantage of lower interest rates and waived processing costs in house loans demonstrates the bank's commitment to providing the finest financing options to all of its valued clients and assisting them in meeting their needs, it added.

In the current high-interest rate landscape, the bank is making retail loans cheaper to bring in cheer among customers, it further said in the statement.

By introducing this offer, the state-run bank is offering one of the lowest interest rates in the banking industry for home loans, it said, adding, the bank has already waived processing fees for home, car, and retail gold loans under its 'New Year Dhamaka offer'.

According to a business update filed with the markets on January 2, the bank's entire business increased by 18.92 per cent year-on-year, hitting Rs 4.34 lakh crore for the quarter ended on December 31, 2023. This increase is due to a 17.9 per cent increase in deposits, which totaled Rs 2.46 lakh crore, and a 20.3 per cent increase in gross advances, which totaled Rs 1.89 lakh crore.