Deposit rates may be further raised by banks in order to meet their credit growth needs, said Punjab National Bank chairman and managing director K R Kamath. This step if taken is definitely going to benefit the depositor in giving them better returns.

"You should expect a better rate (on fixed deposits)," Kamath said.

He said that with rising credit, banks need to mobilise their funds so as to keep pace with growing fund needs by the industry.

Talking about new banking licenses being given to eligible entities, he said that PSBs are open to new entrants in banking space.

Speaking on overseas plans of the bank, he said, "We have four subsidiaries in London, which the bank intends to increase to seven. Then we are trying to set up a subsidiary in Canada, upgrade one in Norway, buying a bank in Kazakhstan and a representative licence in Australia."