A lift in variable rates in December by Bendigo and Adelaide Bank has put the brakes on new lending for the group at a time when it is reaching for asset growth and a lift in returns."The December rises … we have seen that impact flows," Richard Fennell, the bank's chief financial officer, told a briefing yesterday on the bank's December 2016 half year profit.The bank put its lending growth on home loans over the past year at 6.8 per cent, but at 7.4 per cent for its branded retail network, just shy of the growth rate for major banks.Amid the sector's response to APRA efforts to rein in growth in investment lending, pricing may be giving way to other factors in demand for loans."We're starting to see banks differentiate on credit and other things as well," Mike Hirst, the bank's chief executive, said. "It's not [just] the variable rate price."More testing of demand drivers might be needed at Bendigo to temper flat or declining profit measures.Net profit over the half year, at A$209 million, was essentially the same as a year before, a theme reflected in the cash profit of $225 million.The net interest margin over the half eased to 2.10 per cent from 2.16 per cent in each of the prior halves.The bank's return on equity fell to 8.8 per cent from 9.1 per cent.