New Delhi: The country's second largest public sector lender Punjab National Bank (PNB)said there is an upward pressure on interest rates and it would take a call revising them after RBI's annual policy review next month. "Right now there is an upward bias on our interest rates," PNB Chairman and Managing Director K R Kamath said on the sidelines of 117th foundation day of the bank. On the possibility of interest rate hike in the near future, Kamath said, "These are very dynamic rates. There will always be a response to what happens in the economy...We are waiting for announcements in monetary policy to take a view on this." RBI is scheduled to announce annual credit policy for 2011-12 on May 3. Increase in lending rates would depend on credit offtake and RBI's monetary tightening measures. "It depends on credit growth. If there is a credit demand coming in, there is need for us to accumulate deposits an if there is a need for us to give higher interest rates and deposits, probably we will have to pass it on to the borrowers," he said. On credit growth, Kamath said, "Our lending was around 30 percent in 2010-11. We are quite hopeful that our lending will be more than system this year as well." At the same time, the bank has been targeting the net interest margin of around 3.5 percent in 2011-12, he said. "We have always been targeting a NIM of around 3.5 per cent and CASA (current account and savings account) of around 40 percent," Kamath said. To mark 117th foundation day PNB opened 117 branches and ATMs across the country, and adopted 117 villages under its CSR initiative PNB Vikas.