IBA constitutes sub-group to operationalise benchmark PLR
By Our Banking Bureau | 04 Nov 2003
Mumbai:
The Indian Banks' Association (IBA) has constituted
a sub-group to operationalise the benchmark prime-lending
rate (PLR).
Says
IBA chairman V Leeladhar: "Banks had some doubts
about the operational side of implementing the benchmark
PLR. We have narrowed down the differences. It will
take another three to four days for the IBA to send
its advice to the banks."
The
benchmark PLR will be finalised on the basis of the
asset liability profile of the bank, the actual cost
of funds, operating expenses and a minimum margin to
cover regulatory requirements apart from the capital
charge.