I am the present customer of IDBI Bank, Loan Department. I have taken the Housing loan in the year 2007 in the floating rate. In the year 2008, when the home loan interest rate had gone up, my interest rate was revised to 11%. But now when the interest rate is reduced below 9%, then this benefit is not passed to the present customer. Why so??

I feel I am cheated by IDBI bank since they have been very partial in giving the credits to the present customer. Kindly explain why there is the difference of 1.75% in floating rates between the existing customer and new customers. IDBI bank never explained under what policy they are charging such high interst rates from the existing customers.