Public sector lender Corporation Bank has said that despite the continous rise occuring in interest rates, there has not been any corresponding rise in defaults.

"We don't see any rise in defaults in the recent time, despite repeated policy rate hikes by the central bank," said a top official of the bank.

Also several special cells have been set up by banks to monitor any suspicious movement in loan portfolio of borrowers, added the official.

For Q1 of this fiscal, the bank has posted 1.07% gross NPA as against 1.11% for the same period in the fiscal prior to this.

Speaking in regard to net interest margin (NIM), the official indicated the bank's target of achieving 3% NIM by fiscal end.