Top News-Crisil sees hike in deposit rates by 50-100 bps as credit demand offtakes

Credit rating agency Crisil expects sharper hikes in deposit rates in the second half of FY-2011 on the back of strong expectations of a healthy pick up in credit demand. Lending rates are seen firming up gradually in response to the regulatory measures and a tighter liquidity scenario. The deposit rate hikes could be accentuated if the central bank announces any further rate hike in the second half, the agency said in a statement.

The deposit rates will need to be more attractive for inflows to revive as the real interest rates translate into negative territory. Deposit rates could go up by about 50 basis points across tenures in the second half.

On the other hand, IndusInd Bank revealed robust results with net profit up by 71% largely driven by growth in loan book and core fee income.