“The ceiling on the sub-PLR advances is a welcome move. Capping the sub-PLR loans will help to avoid undue competition in the market. There will be more transparency and relevance to BPLR mechanism,” Union Bank of India DGM Corporate Banking R G Kelkar told PTI.
According to Kotak Mahindra Bank’s head retail liabilities K V S Manian many private sector banks already have the system of double BPLRs and a regulation in this effect is unlikely to result in any major impacts in the industry. Though the exclusion of home loans from the BPLR’s fold was under consideration, the working group is unlikely to accept this suggestion as it feels that double BPLR system will alone help to bring transparency in banks’ lending, sources said.
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