HDFC Bank might increase deposit and lending rates in line with the trend in the financial markets, even as its American depository receipt issue is slated to hit the international markets by mid January, 2005.

"A hike in deposit and lending rates is inevitable and we believe that it eventually going to happen. Some of the banks have already increased the rates and we being part of the market would have to do the same," HDFC Bank Country Head (Retail Banking) Neeraj Swaroop told reporters on Wednesday.

However, there has been no decision of either the "timing or the rate of expected increase in deposit and lending rates," he said, adding, even though it is an "eventuality".

The bank's lending rates were at 9.5-14.5 per cent for automotives (depending on the sector and category), 16-19 per cent for personal loans and around 17 per cent for two-wheelers, he said.

On the deposit rates, Swaroop said that HDFC Bank offers 5.25 per cent for deposits up to one year, 5.30 per cent for three years and 5 per cent of six months, he added.

The bank is also planning to increase its number of point of sale terminals by deploying additional equipment in the country, he said.

At present, HDFC Bank has around 36,000-37,000 PoS terminals, which would be in increased to at least 40,000 by March 2005.

The bank would also be installing wireless PoS terminals from different vendors, Swaroop said.

Meanwhile, HDFC Chairman Deepak Parekh said that the bank's $300-million ADR issue is slated to hit the global market by mid-January, next year.

On the prospects for taking HDFC Standard Life Insurance public, Parekh said the public issue and listing for the life insurance company could happen in next two-three years.

The Insurance Regulatory and Development Authority norms prescribe that the insurance company should be listed by the 10th year.

Parekh said before floating the public issue, the life insurance company has to become profitable and "we expect it to achieve break-even by March 2006," Parekh said.

There are no plans to float public issue for non-life insurance company as it still has tiny business base, he added.