Standard Chartered's floating rate home loan currently ranges between 8 and 8.5 per cent. Banks across the board are under tremendous pressure to increase lending rates, but most are still stuck in the "wait and watch" mode.
Citibank is no exception, but it wants to wait till "a realistic picture" emerges after the redemption of the India Millennium Deposits on Thursday.
ABN Amro Bank's home loan PLR is 7.75 per cent, but its current floating home loan rate stands at 9.50 per cent. Citibank offers home loans at floating interest rate of 7.5 to 8.5 per cent and at fixed rate ranging from 7.75 to 8 per cent.
Among state-owned banks, Bank of Baroda has said it has no plans to increase lending rates now, despite an upward movement in interest rates and clear signs of liquidity pressure in the banking system.
Bankers said public sector banks are wary of going ahead with increase in interest rates as the finance minister P Chidambaram want banks to hold on to the current level of interest rates.
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