Instead of jumping into the rate hike war, Kerala-based Federal Bank is in no hurry to increase its savings deposit rates. Rather, they may be planning to improve customers' service. This is despite the fact that its peer banks already upped savings deposit rates by 150-200 basis points.
MV Nair, CMD, Union Bank says credit growth is falling but deposit rates are still very high. He expects to pass on the rate increases by the second half of FY12. Romesh Sobti, MD and CEO of IndusInd Bank says they have already passed on a 25 bps rate hike to their customers.