The Hindu Business Line : Banks should not lend below PLR: Kapur

"IT is a dirty cut throat rate war that banks are indulging in, to survive and grow in a competitive environment," Chairman and Managing Director of Vijaya Bank, Mr M.S. Kapur, said.

Speaking to Business Line, Mr Kapur lamented that in this `dirty' game, large corporates managed to strike a good bargain with banks and avail of credit support at low rates, while the farmer and common man, who cannot afford to pay more ended up paying more. "Banks should stop blowing their own trumpet. They should not be allowed to lend below the PLR (prime lending rate), besides having the freedom to decide their PLR."

With more players competing in the same space, he conceded that the competition was hectic, but ruled out the general allegation about mounting bank charges.

Bank charges, he said, had already slipped downwards because of the competition. "It could be the taxes, but I cannot comment on that," he said.

To a query on consolidation/merger both in the bank and in the industry in general, Mr Kapur conceded that any development on this line was still only in the thinking stage.

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