The second largest public sector lender of the country, Punjab National Bank may be raising its deposit rates by 25-50 basis points soon. The deposit rate hike comes in view of the recent hike in repo and reverse repo rates by RBI in the monetary policy review.

"The deposit rates may increase by 25 and 50 basis points across different time baskets and we will take a call on it in our next Alco (Asset Liability Committee) meeting, which will take place in a day or two," PNB Executive Director, Mr Nagesh Pydah said.

"If the deposit rates are raised, definitely there will be an impact on lending rates also. But there will be a lag in raising lending rates," he said.

"There was a move to revise the lending and deposit rates in the last Alco meeting, but we deferred it and waited for the outcome of RBI's monetary policy," he said.

The bank sees a growth of 20% in its deposits and 24% in advances for this fiscal.

"We have kept out growth level of deposit and lending two to three per cent higher than the RBI's guidance for this year," he said.