New Delhi, Oct. 9 -- State Bank of India (SBI) Chairman C S Setty on Thursday said banks are unlikely to raise deposit rates over the next two to three months due to surplus liquidity in the banking system, while the Reserve Bank of India's (RBI) shift towards monetary tightening is expected to support banks' net interest margins (NIMs) for the next two to three quarters.

Speaking a day after the RBI's monetary policy announcement, Setty said the current liquidity position could delay deposit rate adjustments.

"I believe that next two-three months, there may not be any rate action on the deposits because we have sufficient liquidity in the system," Setty told reporters here, PTI reported.

However, he cautioned that sustained high credi...