By Latha Venkatesh, CNBC-TV18

An interesting part would be how the banks will react to the CRR hike. On Thursday the hike was announced; most of the bankers said that they would wait and watch.

But now bankers tell us that many of them have already started charging higher for incremental loans. Not for home loans or those broad category loans, but for a lot of loans which are connected to the PLR what are called sub-PLR loans - if they were given at 3% below the PLR, they will now be given at 2.5% below the PLR.

Chairman and Managing Director of Indian Overseas Bank, SA Bhatt said, "It will be necessary for me to take at least the new borrowers at a quarter and a half. In fact in my bank we have taken a decision that any new advance that we will be doing below Benchmark Prime Lending Rate (BPLR) will be increased by minimum 50 bps than what we  were doing earlier."

The IOB Chairman is not alone; the Union Bank also said that they will start resetting loans which are coming up for renegotiation. But couple of other banks like Bank of India in particular said that even for such resetting, they will wait for the 29th April policy.