Banks generally, to revise fixed deposit interest rates and advances when the central bank increased the repo rate.

However, this time the bankers say that the deposit rate has reached its peak, leaving little room for any upward revision.

Currently, interest on deposits between 46 and 60 days is between 5 % to 8.50 %. It '8 % and 10.50 % for various periods from six months to five years, and the bankers are saying that this area is the largest, taking into account the rising cost of deposits.

There are other factors that make hiking interest rates on deposits remote possibility.

Credit growth during the first two quarters was slow growth which means more humiliated in net interest income and net interest margins.

The tip of the Bank also noted that the draft business fixed investment in new projects has diminished considerably since the second half of 2010-11 and remained low during the first quarter of 2011-12.

Therefore, the investment pipeline is likely to decline, threatening growth in 2012-13. Collection would be a difficult credit for banks.

In addition to increasing the development of retail, banks also offer some concessions and incentives, which add to cost of funds.

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Any increase in deposit rates in these circumstances could lead to additional burdens that affect profitability.

Most banks have revised the deposit rates from August to September, and argues that today's hike in repo and reverse repo rates have already been recognized.

So while you may have to pay a little more interest on loans, income from your deposit is unlikely to go back immediately.

Source: thehindubusinessline