Private sector lender Lakshmi Vilas Bank has said that it would not be going for any hike in its base rate in the near future. The bank had revised its base rate only a month back to 10.50%.

According to chief executive of the bank, Mr Somasundaram, the bank has space to accomodate more increase though it would not be doing so on immediate basis.

"Today, small banks have taken a squeeze and it is continuing to be a challenge. I don't expect to hold on this increase for long. We have to ultimately pass it on to the customers," he said.

He showed concerns over the still persistently high inflationary figures.