Wholesale bank lending rates may go up: Dilip Bhat

In a chat with ET Now, Dilip Bhat, Jt MD, Prabhudas Lilladher, gave his views on RBI credit policy and impact on banking stocks. Excerpts:

What did you make out of the credit policy announcement in line with the expectations and how do you take banking stocks forward from here?

By and large all of us were expecting this 25 and 50 basis increase in the repo and the reverse repo, so the general call is that for the banking stocks in particular is that on the short run, the interest rates are going to rise. We will see a rise in the deposit rates. The wholesale lending rates also probably will go up. All in all the credit growth still despite an 8.5% GDP growth still appears to be a little muted at 20% and if you were to take out the telecom part, still the credit growth pick up as yet to happen and as far as the banks are concerned, probably I would still see that it will remain under the shadow of the overall market where I feel that may be in a run-up to September-October, probably we may see index possibly can go up by about 100 points from here and on the upside and then on the downside, 5000-5100 looks very much possible, so I am slightly little cautious and apprehensive in the short run in a run-up to September-October.