It is more of a perception than a reality. On analysing the various sectors in the economy, you find that there would be many sectors/ market segments which are reasonably insulated from such phenomenon. Financial services sector is an exception. Fact and figures connote that cost cutting is happening but that is to contain losses.

Small businesses are witnessing a drop in profitability but are finding ways of tackling it. In case of low profitability we cannot pass on that to my customer but we should squeeze our margins. Yes the times are tough and really smart people will be able to overcome the situation.

Should home loan customers go for fixed or floating rate home loan? Why?

It is always advisable to opt for floating rate loans unless there is a strong indication of interest rates going up, and remaining at an increased level for a sustained period of time.

There are complaints regarding lack of transparency in interest rates offered to the customers: be it fixed or floating. Your comments.

In case of rate change be it an increase or decrease, we take the marginal fund cost consideration into account. But it is not true to say that old customers are not informed. You can check our track record. But yes it is a business call that new interest rates are offered to new customers based on running costs

Also see: Seven golden home loan rules

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