With the cost of funds still high for banks, lending rates have little room to come down any further It is in our own interest to bring down our lending rates so that our asset portfolios do not get impaired, said TS Narayanasami, chairman of the Indian Banks’ Association. But without some movement, banks could suffer. “It is in our own interest to bring down our lending rates so that our asset portfolios do not get impaired. We are making every endeavour to see that cost of funds are bought down,” IBA chairman TS Narayanasami told reporters. Banks are also likely to drop deposit rates over the next fortnight to recover costs and pass on the transmission of interest rates.