"We are reviewing the interest rates on deposits. We have to take a decision soon," Indian Bank chairman and managing director M B N Rao said.
Banks including ICICI Bank, Central Bank of India, Union Bank and Andhra Bank have hiked interest rates on its domestic term deposits by 0.25 to 0.75 per cent on various tenures over the last few weeks.
Rao said the interest rates would not shoot up as feared earlier. The main reason for this was the effective policy interventions to check inflation among other things, he said.
Ruling out an increase in home loan rates, Rao said under present circumstances, Indian Bank would not touch its housing loan rates for the time being.
Two leading domestic home loan players, namely HDFC Bank and ICICI Bank, had hiked the interest rates on home loans by 0.50 to 0.75 per cent.
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