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Our Bureau

Mumbai , Feb. 9

THE Indian Banks' Association hopes to finalise its report on the multiple Benchmark Prime Lending Rate (BPLR) rate this month and submit the same to the Reserve Bank of India.

The Chief Executive of IBA, Mr H.N. Sinor, said, "We are still trying to grapple with the issue of BPLR. We have held several rounds of discussions with banks and we want to finalise the issue. We want to submit the report to RBI this month so that it can include the recommendations in the Annual Monetary Policy in April."

While banks want segment-wise pricing of credit, RBI is insisting on transparency in the system.

"We want to maintain a balance between RBI's requirement of transparency and the operational feasibility for banks," Mr Sinor said, at a seminar on banking technology organised by IBA.

Earlier, RBI had said increasing spreads between minimum and maximum lending rates were distorting the role of BPLR. Though sub-PLR lending has helped corporates raise funds at competitive rates from banks, it is distorting the role of BPLR itself, RBI had said.

The multiple BPLR system envisages separate BPLR for segments such as retail, agriculture, infrastructure and small and medium enterprises. The BPLR would be the floor rate. Banks would have to publish the rates on their Web site.

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