Mumbai: The country's top lenders, State Bank of India and home loan provider Housing Development Finance Corp have announced a review of their respective lending rates following a hike in the Reserve Bank's repo rate.

While SBI sad it will review its interest rates on Friday, HFC chairman Deepak Parekh said it will take a decision on raising interest rates on home loans by end of this month.

He said there was upward pressure on interest rates after the RBI raised its key lending rate unexpectedly by 25 basis points to 8.0 per cent yesterday.

"There will be some rationalisation of interest rates and maybe we need to raise PLR," O P Bhatt, chairman of SBI, the country's largest lender, said.
 
''There is certainly an upward pressure on interest rates," HDFC's Deepak Parekh said.

"We will see how short-term interest rates behave, how liquidity conditions in the market are and then take a decision whether we have to raise interest rates by 1 July," Parekh said.

State Bank's Bhatt said there was a slight slowdown in consumer demand for loans.
 
But KV Kamath, chief executive of India's second-largest lender, ICICI Bank, said he saw no slowdown in lending and his bank would wait to take a decision on interest rates.