The largest private sector lender of the country, State Bank of India is setting plans to raise its base rate by December along with raising other lending rates too.

SBI remained amongst the very few lenders which have till now not revised their base rate.

"They (lending rates) were raised about two months ago. There has been a huge amount of pressure on liquidity ... its not just getting tighter, but liquidity has become more volatile in the system. In this quarter, you will see a hike in base rate," SBI Chairman O P Bhatt said.

"Every interest rate in the system has gone up, plus there is also the pressure of increasing the provisioning to 70 per cent...I think the interest rates will go up on the lending side."

Bhatt also said that the September quarter was the one where cost of deposits was amongst the lowest in industry.