The bank interest rates are rising rapidly in India. Only a few months back, the bank interest rate was as low as 8%, and now reached about 11% in housing loans sector. It is higher in other segments like personal loan, business loan, etc. The raise is primarily due to inflation, and subsequent exercises by to government of India to curb raise in inflation rate by increasing CRR and interest rates to banks.
This has some negative impact on stock markets (BSE - Bombay Stock Exchange), with index falling as much as 600 points in a single day (approximately 4%). It is believed that the Congress government is getting prepared for the coming general elections, and the trend is likely to continue during coming months.