Lately ICICI bank reduced its home loan rates by 0.10%, but many banks are unlikely to follow the same and reduce the home loan rates. In past few years banks have been focusing on increasing their retail portfolio in the loan pick-up in the corporate segment. But bankers are in no mood to revise their retail lending rates.
Since the other banks are unlikely to follow the move, so the EMI’s are likely to remain same. The new rates of the ICICI bank are at par with the country’s largest lending bank – SBI. Other bank stated that this move of the ICICI bank is aimed to expand its market in the home loan segment. Vice-Chairman and CEO of mortgage lender Housing Development Finance Corporation, said the rate review is an ongoing process and their at present they have no plans to cut down the rates. Chairman and MD of Bank of Baroda stated that there is no need of cutting down the rates since, the cost of deposits and inflation are still high.