The largest lender of the country, State Bank of India will soon be raising its deposit as well as lending rates, atleast by 25 basis points.
"There is an upward bias on interest rates ... on the both deposit and lending rates. We will review deposit rates and benchmark prime lending rate," SBI chairman O P Bhatt said.
Talking about the quantum of rise in rates, he said , "It has to be minimum 25 basis points." He, however, did not comment on when the bank would review the rates.
"The deposit rates have almost bottomed out for the industry and there is definitely an upward bias as far as advances are concerned because of the way the RBI is managing the inflation and liquidity," he added.
Rates have been hiked by many banks like Punjab National Bank, Bank of Baroda and Canara Bank, following the policy rate hike by RBI.
SBI has recently posted 25% growth in its net profits for Q1.
Major banks like ICICI Bank, Punjab National Bank, Union Bank of India, Oriental Bank and HDFC Bank have also raised their deposit rates.