In the face of hike in repo rate, all leading banks, including State Bank of India, ICICI Bank, Corporation Bank and Bank of Baroda, are exploring the possibility of raising deposit and lending rates.

"We are reviewing both (deposit and lending rates)," SBI chairman A K Purwar told reporters on the sidelines of a banking conference when asked if the bank was planning to raise interest rates.

The revision of interest rates have emerged after the Reserve Bank of India increased repo rate by 0.25 per cent, which was announced at last month's busy season credit policy, as part of its efforts to stem inflation.

ICICI Bank managing director K V Kamath said the bank would be conducting a review of the rates after Diwali. "We will be reviewing all rates after Diwali. It would be sometime next week," he said.

Commenting on the liquidity condition in the market, he said it was a "bit tight" and even call rates had been moving upwards.

He said demand for credit from retail sector was emerging very strong with a rate of 40 per cent and the bank will watch how the off take behaves in the next six months.

He ruled out any acquisition on domestic or international front, saying that the bank was focussing on organic growth.

Bank of Baroda chief, P S Shenoy said soft interest rate regime was over. "The era of soft interests rates appears to be over. But it does not mean that rates will go up. Most probably it will stabilise at present levels," he said.

However, Corporation Bank chairman and managing director K Cherian Varghese said the bank did not have any plan to raise the rates immediately.

"We do not have plans to increase the rates immediately but at the same time we cannot remain in isolation," he said.