Bankers, which recently carried out a round of reduction in their benchmark prime lending rates, feel that rates are already low and there was no need to for lowering it further for sub-Rs 20 lakh home loans.

None of the big public sector banks expressed their intent on a cut. “We were the first to pass on the benefit of lower interest rates to customers of sub-Rs 20 lakh,” claimed Union Bank of India Chairman & Managing Director M V Nair. Similarly, Punjab National Bank Chairman K C Chakraborty said the bank was not looking at reducing rates further as it was already offering lowest rates among peers.

Bankers feel that a reduction in last quarter of the fiscal was difficult looking at tight liquidity conditions.