Public sector lender, Punjab National Bank has said that any kind of revision in its interest rate regime will come only after regulator Reserve Bank of India comes up with the annual monetary policy for this fiscal.

"Right now there is an upward bias on our interest rates," PNB Chairman and Managing Director K R Kamath said.

Speaking of interest rate hike, he said, "These are very dynamic rates. There will always be a response to what happens in the economy...we are waiting for announcements in monetary policy to take a view on this."

The monetary policy for this fiscal is expected to come out on May 03, 2011. Increase in loan rates would totally be determined by increase in credit demand and policy tightening measures by RBI.

"It depends on credit growth. If there is a credit demand coming in, there is need for us to accumulate deposits an if there is a need for us to give higher interest rates and deposits, probably we will have to pass it on to the borrowers," he said.

"We have always been targeting a NIM of around 3.5 per cent and CASA (current account and savings account) of around 40 per cent," Kamath said.