The largest private sector lender of the country, ICICI Bank has said that a rise in interest rates is likely following the rising credit demand on one side and RBI's policy tightening measures on the other.

"There is an upward bias on interest rate. How they move up... To what extent they move up and at what rate they move up... Will partly depend on how credit growth rate in the system picks up," ICICI Bank CEO and Managing Director Chanda Kochhar said.

RBI has recently raised policy rates in the monetary policy review. This is the sixth time in this year that policy rates have been hiked by the apex bank to control the towering inflation.

"Clearly, the fact is that the liquidity is being managed tightly. The fact is that deposit cost have gone up and therefore as credit demand picks up there would be upward bias on interest rate," she said.

Kochhar said "there were some periods last year where we had excess liquidity. All that has gone. We are tightly managing liquidity," while speaking about the tight liquidity condition.

The likelihood of interest rate hike is also viewed by SBI Chairman, O P Bhatt.

"Interest rates have a slightly upward bias... (due to) liquidity combined with some more credit offtake, which is going to take place. So these two together may push up interest rates," Bhatt had said.