The slowdown is beginning to bite. The rise in interest rates along with the drop in demand for loans could emerge as a trend for second rung banks.The first sign is reflected in the IDBI numbers which is already struggling with a heavy bad loans. With gross NPAs rising to Rs 1,293 crore or 2.06 per cent at the end of June compared to Rs 1,231 crore or 1.89 per cent at the end of the previous quarter.