Close on the heels of the Reserve Bank of India (RBI) raising its policy rates by 25 basis points in its mid-term monetary policy review last week, banks are gearing up to go in for another round of hikes in their lending and deposit rates.

Some public sector banks that have confirmed their plans to increase the interest rates soon include Canara Bank, Indian Overseas Bank and Corporation Bank.

Canara Bank CMD S Raman said, ?Our bank may increase its base rate by 25 basis points, when its assets and liability committee (ALCO) meets next week.??

Last time, the Bangalore-based public sector lender had revised its Benchmark Prime Lending Rate (BPLR) and base rates by 50 basis points each from 13.75 % to 14.25 % and from 9.50 % to 10%, respectively.

Corporation Bank CMD Ramnath Pradeep said the bank was also likely to increase its lending rates by 25 basis points as it wanted to protect its margin. However, Pradeep made it clear that the bank was not in a mood to increase its deposit rates.

Indian Overseas Bank CMD M Narendra said that the bank was waiting for its ALCO meet to decide the rates. Narendra hinted the rates could go up by 25 bps. He also indicated that the bank may also increase its short-term deposits.

State-owned lender IDBI Bank, which had its ALCO meet on Saturday, has decided to increase its deposit rates by up to 50 bps, effective June 21.

IDBI Bank has increased its deposit rates by 10 bps to 8.25% for a maturity period between 6 months and 269 days and by 50 bps to 9% for maturity period between 270 days and one year.

IDBI Bank executive director RK Bansal said the bank had increased its deposit rates by 25 bps to 9.25% for the maturity period between 266 days and 499 days.

Bansal said, ?We have done this only to make our deposit rates in these buckets attractive and keep them in alignment with the 500-day deposit rates, which are offering 9.5% and contribute 90% of deposits for the bank.??

Dena Bank CMD DL Rawal said the bank may take a call on its rates during the next month only.

However, United Bank of India CMD Bhaskar Sen said there was no reason to hike our interest rates.

?As we have increased our base rates by 50 bps in the recent past, we are not much adversely affected by the hike in key policy rates,? added Sen.

IDBI Bank has restructured its education loan in which it currently charges interest rates in the range of 12.25% to 12.75%.

?We will be offering a concession of 25 bps in education loan to the boys hailing from SC/ST and minority communities and by 50 bps to the girls hailing from these communities, effective from Tuesday,? said Bansal.

Bank of Baroda chief economist Rupa Rege Nitsure said that it being the slack season, there was no pressure on liquidity. ?There is no sufficient reason to raise our interest rates. The rates may go up only when the farm credit picks up,? added Nitsure.

Punjab National Bank ED Mohan Tanksale also said that at the moment the bank was not looking at any revision in its rates. ?We are not the borrowers from RBI as of now,?? added Tanksale.

Oriental Bank of Commerce ED SC Sinha said the bank was not in favour of a rate hike. ?Utilisation of funds at the time of slack credit pick-up season is important for us,?? he added.