It is a fair business ethics. Please understand that the interest rates are market driven, the base rate is decided by the RBI and banks charge over that. If one specific bank charge too much on the higher side then the business will suffer so that will not happen. The banks may differ by 25 to 75 basic point in general, based on there liability class, balance sheet size and operations costs. Please understand that banks are not there for charity. there are shareholders and they expect the banks to make money, so they will charge a higher rate to make money and not high enought to go out of business. The issue is that many people look a much higher exposure with respect to home loans, based on the assumption thatthe rates will be low for ever. Now that the rates have goe up, they are facing the heat, they did a wrong analysis at their end.. banks and economy cant be blamed for that. Lets get real and objective in oor approach.
Mind you I am not a banker and never worked with any bank, I just take a fair and neutral view on the scenario based on my knowledge of Finance and Economics.
