Mumbai: Most bankers have ruled out the possibility of lending rates softening following RBI's move to suck out excess liquidity, but housing finance leader HDFC sees a scope for reduction.

"There is enough liquidity in the system, softening of lending rate could happen," HDFC Chairman Deepak Parekh said.

Interest rates can come down despite CRR (percentage of total deposits that banks keep with RBI) hike, he said.

On home loans, Parekh said there is no upward pressure on home loan even though CRR has gone up. HDFC will wait and see how market pans out in next 3-4 days before taking any decision on the home loan front, he added.

However, a majority of bankers hinted at a stable interest rate regime despite the Reserve Bank's move to suck out excess liquidity by hiking CRR by 50 basis points to 7.5 per cent from November 10.

Two of the country's largest lenders -- SBI and ICICI Bank -- said interest rates were unlikely to change and that the hike in Cash Reserve Ratio could be absorbed.

"SBI will not change any rates for the time being and whether interest rates will come down or go up is for individual banks to decide," State Bank of India Chairman and Managing Director O P Bhatt told reporters.

ICICI Bank Joint Managing Director Chanda Kochhar said: "This amount of CRR hike could be absorbed... There should not be much change in the interest rates" despite some pressure on net interest margins.

"The policy has to be seen in the context of what has happened this quarter...That huge liquidity is there and continues to pour in is a matter of concern," Bhatt said.

Source : PTI