IBA constitutes sub-group to operationalise benchmark PLR

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.