Though Indian private banks like ICICI and HDFC favored the policy of dual interest rate housing loans, other banks are unlikely to go the same direction.

Perhaps the reason lies in the fact that there are many provisioning requirements which could pose a huge roadblock for banks, though ICICI and HDFC think otherwise.

Even the largest lender, SBI, had withdrawn its hands from the loan scheme, post acknowledging the same.

Confirming the same, Edelweiss Housing Finance (EHFL) Executive Vice-President Anil Kothuri said: "Given the provisioning requirement for dual rate loans, it is unlikely that other financial institutions will come up with dual housing loan rates".

It's being believed that in a bid to get a meaty share in the market, the duo of ICICI and HDFC had taken the decision, but other banks have refused to adopt the same.

Even industry astute observes are in favor of the same that such higher provisioning norms could put a huge pressure on the profit margin of the banks.

With the kind of response the scheme is getting from banks and housing finance firms, EHFL is mulling the option to review the scheme once again.


Keywords: Indian private banks, ICICI, HDFC , policy ,dual interest, rate housing loans, roadblock , banks,SBI,loan scheme, Edelweiss Housing Finance ,EHFL, Executive Vice-President , rate loans, market, profit margin .