The banks are unlikely to revise interest rates despite repeated request by the Reserve Bank of India. They are already under pressure due to recent cuts in interest rates, adversely affecting their net interest margins (NIMs).

Almost all lenders, private and public sector, have passed benefits of reduction in interest rates to the customers and corporate sector, offering the loan at easy rate without caring for downward pressure on the banks' NIMs according to Union Bank of India Chairman and Managing Director, Mr. M. V. Nair.

Punjab National Bank Executive Director, Mr. Mohan V. Tanksale said, "Our lending rate is 11 per cent, the lowest in the industry. Deposit rates are at 8.5 per cent. There is no scope for cutting lending rates further."

Mr. M. D. Mallya, Chairman and Managing Director, Bank of Baroda also ruled out possibility the possibility of interest rates cuts at this point of time. Expressing similar views, Mr D. L. Rawal, Chairman and Managing Director, Dena Bank said that lack of credit off take is low due to lack of demand in the system, not because of high lending rates.

UCO Bank, MD, Mr S. K. Goel added, "Further reduction in interest rates is possible. We will cut rates by around 100 basis points in the next three months, as our high cost deposits mature."