India's second largest lender ICICI Bank sees domestic lending rates gradually hardening in line with the international trend.
ICICI Bank executive director Nachiket Mor said the bank has no immediate plans to revise interest rates upward.
He said there is no immediate concern as there is enough liquidity in the system.
The Mumbai-based bank's retail disbursements were about Rs 25,900 crore (Rs 259 billion) including home loan disbursements of about Rs 10,600 crore (Rs 106 billion) till September this fiscal.
The interest rates in India was expected to harden especially after Reserve Bank raised two key short terms rates -- repo and reverse repo -- by 0.25 per cent each in the busy season Credit Policy.
Earlier, the country's largest lender State bank of India had also stated that there was an "upward pressure" on rates. However, none of the PSU or private banks have raised their lending rates so far.
After his meeting with bank chairmen on November 18, Finance Minister P Chidambaram had stated that lending rates to productive sectors would remain stable till the end of the current fiscal.
Mor dodged queries on whether ICICI Bank was watching its PSU competitors' move on lending rates, saying there are so many factors, which determine the lending rates.
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