Pratip Chaudhuri, SBI (State Bank of India) Chairman, said that SBI will alter its lending rate depending upon the level of completion. Chaudhuri said, “Immediately, we are looking at reducing interest rates on education loans and some industrial loans.”

Jairam Sridharan, Senior Vice-President for Consumer Lending and Payments at Axis Bank, quoted, “We are watching the competition. But no plans right now.”

ICICI Bank has introduced 2 new fixed rate home loan products. First - a fixed rate of interest of 10.75 percent on first 2 years. Second - a fixed rate of interest of 11.25 percent on first 3 years. The rates of interest will revert back to the old rates after the lapse of the stipulated periods. It is charging an interest rate of 10.50 percent in loans not exceeding 30 lakh. An interest rate of 10.75 percent is applicable on loans ranging from 30 lakh to 75 lakh. An official of ICICI Bank quoted, “We will wait for some rate action from RBI before we reduce our rates.”

Still, a few banks have not revised their rates of interest. Bank of Baroda is still charging more than 10.2 percent on bulk deposits. R.K. Bakshi, Executive Director of Bank of Baroda, quotes, “But for certain category of products like home loans, we have extended our special rates up to March, 2012.”