As the credit growth of the country increases, there would be a gradual rise in the lending rates in the next two quarters, said Ms. Shikha Sharma, CEO and MD, Axis Bank.

"The Reserve Bank of India is concerned about both growth and inflation. Credit is going to pick up and there will be a change in the demand-supply situation. The last one month has seen a strong spurt in credit demand. In the next couple of quarters, lending rates may go up, but not sharply," she quoted.

She said that the economy currently has a lot of liquidity. Whatever measures are adopted by RBI would ensure that the liquidity is not impacted.

She also said that RBI's steps would be aimed at reducing volatility and shock in the market.

Speaking on the issue of banks' margins getting affected by interest calculated on a daily basis on savings account she said that the margins of banks would be affected by way of rise in their cost of funds by 15-20 basis points.

Commenting on the asset quality of the bank, Ms. Sharma said that the bank harbors chances that some of the restructured advances may turn into NPAs.

She however seemed positive that loan growth will gain pace as the economy moves towards recovery.