One day after the Credit Policy, banks have started pushing up deposit rates.
HDFC Bank was the first of the block raising deposit rates from 25 to 50 basis points, reports CNBC-TV18.

Central Bank of India will hike deposit rates by 25-50 bps from August.
Sources at Axis Bank said they too should be shortly raising rates.

ICICI Bank said their board meeting is on July 31 and while they can't be sure what decision will be taken, chances of a deposit rate hike can't be ruled out. Some PSU bankrs said they may wait longer.

However speaking earlier to CNBC-TV18, MD Mallya, CMD of Bank of Baroda said that there would not be any change as far as the base rate is concerned because normally it happens with a lag because it is primarily depended on the deposit rates.

"The changes which have been made by the RBI are on expected lines and therefore the increase of 25 bps in repo and 50 bps in reverse repo, gives a very strong signal that we are seeing an increasing interest rate scenario," he said.

Therefore, the bias is towards increasing interest rates in the days to come, Mallya reiterated.