ICICI Bank has said that lending rates may see a hike after September. The bank has currently raised deposit rates on various maturities.

"There is clearly an upward bias. An increase in deposit rates does not translate into a rise in the cost of funds immediately. It usually happens with a lag," ICICI Bank Managing Director and Chief Executive Chanda Kochhar said.

"My expectation is that it is in the second half of the year that you will really see lending rates going up," she added.

However lending rates have already been raised by banks like Union Bank of India and Punjab National Bank in a drive to push theri customers towards base rate.

The largest private sector lender expects to attain a growth of 20% in credit in this financial year. "The domestic loan growth in the FY11 is expected to be 20 per cent but the total growth, which includes international loans, will be around 15 per cent," Kochhar said.

ICICI Bank hiked deposit rates across various maturities by up to 0.75 per cent.

The bank reported 16.8% rise in net profit at Rs 1,026 crore as against Rs 878 crore for the same quarter last year.