ICICI Bank has stated that loan rates may go up after September.
Chanda Kochhar, ICICI Bank MD and CEO said, “There is clearly an upward bias. An increase in deposit rates does not translate into a rise in the cost of funds immediately. It usually happens with a lag”.
She said further, “My expectation is that it is in the second half of the year that you will really see lending rates going up”.
But other banks have already hiked their lending rates. Union Bank of India and Punjab National Bank have done so in order to make their clients switch over to the base rate.
ICICI anticipates to achieve an increase of 20% in credit during this fiscal. Kochhar said, “The domestic loan growth in the FY11 is expected to be 20 per cent but the total growth, which includes international loans, will be around 15 per cent”.