Public sector lender, Oriental Bank of Commerce (OBC) has plans to raise deposit as well as lending rates but after the announcement of the Monetary Policy on April 20, Chairman TY Prabhu said.
The banks were put on shock by the RBI in March when it suddenly raised the repo as well as reverse repo rates by 25 basis points. Though the step was taken to tame the wildly growing inflation of the country, but it meant pressure on banks to tighten lending rates for both lenders as well as borrowers.
"Immediately, we are not thinking of a rate hike because this (RBI rate hike last month) is only a signal that the RBI has given to contain non-food inflation," Prabhu said.
"We will wait for the credit policy, and based on that we will have to meet and review the position at that time. Some pressure we are seeing on the deposit rates... That kind of pressure is not there on advances," he said.
Previously, following the hike in CRR by the RBI by as much as 75 basis points, many banks had increased deposit rates on selected maturities. Major banks like ICICI and HDFC had raised interest rates on deposits.
"We will review certain segments of the deposits, depending on maturity and liquidity... But we have not done it based on the RBI's current position. As of now, it is not warranted," he said.
Prabhu expressed his view saying that policy rates are expected to tighten further if the inflation remains untamed.
Inflation in India had touched its 16-month high of 9.89% in February from 8.56% in January.
The current inflation rate of the country has crossed RBI's forecast for the month of March at 8.5%.