The largest lender of the country, State Bank of India has hinted that it might raise its savings account rates by as much as 125bps soon.

"On an average...we are expecting 100-125 basis points increase in the funding cost of savings bank," said Mr Pratip Chaudhuri, Chairman, SBI.

Soon after announcement of savings account rates getting deregularized, private sector lender Yes Bank seemed to be the first in taking a stand by raising rates by 200 bps.

"We would not be the first mover," said Mr Chaudhuri, also adding that, "We will have to see how other banks play it out and then we will take appropriate policy action."