Interest rates to be stable in short-term: ICICI

Interest rates are likely to remain stable in the short-term, a top banking industry official said on Thursday.

"Our understanding is that interest rate would remain stable for the next 6-9-months," ICICI Bank Executive Director V Vaidyanathan told reporters in Mumbai.

Private sector ICICI Bank is the second largest lender in the country after state-owned State Bank of India. On a possible cut in home loan interest rates by the bank, Vaidyanathan said no decision had been taken as yet.

"The expectation is that monetary policy would remain tight. We are constantly watching the cost of funds but have taken no decision as of now on our home loan rates," he said.

Lenders like HDFC, Bank of Baroda and IDBI Bank have dropped interest rate on home loans in the last few weeks.