Recent liquidity easing measures from the central bank and the improving scenario might lower the lending and deposit rates in the next one month, a top banker said.

"High interest rate-scenario is not acceptable for the customers even if the liquidity is sufficient. In the next 3-4 weeks, deposit rates are likely to come down and subsequently lending rates," Bank of India [Get Quote] (BOI) Chairman and Manging Director, T S Narayanasami told reporters.

As part of its efforts to ensure stability and sufficient liquidity in the financial system, Reserve Bank is likely to continue its ongoing policy measures but is unlikely to slash the repo rate in the forthcoming policy, Narayanasami said.

"The RBI may continue with the policy measures but not necessarily in the policy, they can do it even after that.(However) I do not think that the repo will be cut again," he said.

Given a general slow-down and rising defaults in the banking industry, BoI has decided to go slow on retail lending which grew by nearly 8 per cent during the quarter ended September 30, the Chairman said.

The state-owned bank has seen no slowdown in loan demand from its corporate and SME clients and hopes to maintain a healthy business growth in the remaining part of this fiscal, he said.

The total business of BOI, as at end-September stood at Rs 2.93-lakh crore (Rs 2.93 trillion) posting an impressive 30 per cent growth year-on-year.