In its quarterly policy review, in January, the Central Bank of India did not make any changes in its key rates but said that in the recent times of falling interest rate the commercial banks could decrease their interest rates.
Last week, HDFC had reduced its Benchmark rate (prime lending rate) by 25 basis points to 10.25%. This week, Allahabad Bank reduced its lending rate by 50-100 basis points, to individual borrowers for purchasing consumer goods, houses and cars. However, the largest private lender of India – ICICI Bank has refrained itself from any cuts in its home loan rates in the coming times.
Responding to the queries of the reporters, the CEO of ICICI Bank, K.V. Kamath said, “This is the last quarter when credit off-take will be better. We will wait and watch and it is not the right moment to talk about it.”