Private sector lender ING Vysya Bank has indicated a probable rise in its lending rates in the upcoming quarter in response to the rising pressure from upward movement of deposit rates.
"If the deposit rates have been hiked 50 basis points, lending rates have to be increased by more than 50 basis points and if you feel the deposit rates have moved up by 100 basis points, it (lending rate hike) should be more than 100 basis points," the bank's managing director and chief executive, Shailendra Bhandari said.
"The current phase of high borrowing is largely due to advance tax payments. Going foward, as the Government spending comes in, things will ease," he said.
Talking about policy rate hikes he said that seeing the inflationary pressure, it is expected that RBI may go for another set of policy rate hike in the next quarter monetary policy review.