The third largest private sector lender of the country, Axis Bank may also go for hike in deposit rates following the policy rate hike by banking regulator RBI on July 27.

"Deposit rates are likely to go up. We are going to review our deposit rates soon," Shikha Sharma, Mananging Director and CEO of Axis Bank said.

"The deposit growth during the first quarter was weak. However, now with the liquidity back to normal levels, the deposit growth should be higher during the second quarter. We are going to review our deposit rates soon," she added.

"Deposit rate are likely to go up before the lending rates," she said. The bank posted a 34% rise in deposits in the last quarter.

Meanwhile Central Bank of India and HDFC Bank have raised deposit rates.

"Credit growth is likely to be moderate during the second quarter, but it will be more or less aligned to RBI's expectation of about 20-21 per cent growth for the year. The first quarter saw a very high credit growth, this was partly due to the telecom licence payments," said Sharma.