SBI wants to bring back teaser loans, but will it get RBI nod?

Money Control | Sep 17, 2019 at 12:31 PM
  • The country’s largest lender is making another attempt at bringing back the so called ‘teaser loans’ as the banking industry gears up to meet the deadline for linking loans to an external benchmark.
  • In fact, RBI mandated banks offering teaser loans to make higher provisioning against such loans.
  • Now, the issue with external benchmarking is that while a fixed rate loan portfolio ensures returns in future, shifting to a floating rate structure will create uncertainties.