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StanChart to review its BPLR soon: Swaroop

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 9:59 PM IST

Private lender Standard Chartered Bank may again review its benchmark prime lending rates (BPLR) soon, a top bank official said.     

The bank had increased its BPLR by 1.25 per cent to 14.25 per cent in late-July.     

StanChart might review its BPLR in view of the changed environment, Standard Chartered Bank India Head Neeraj Swaroop told reporters here today.     

Several banks have raised their lending rates in last two to three days following the Reserve Bank hiking its key rates earlier this week.     

Swaroop said further monetary tightening could be expected in the coming months given the prevailing high inflation rate, which currently stands at 11.98 per cent.     

However, StanChart's lending portfolio being very small, the bank has not seen any delinquencies in the corporate segment. In consumer finance, however, there has been a marginal increase in bad loans, Swaroop said.     

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There was a possibility of the current high interest rates affecting small-and-medium enterprises (SMEs). Given the high interest rates, SMEs which don't have a unique business model could face pressures, he said.      

On consolidation of the Indian banking industry, the StanChart official said that consolidation in the domestic banking sector should happen both within the public sector segment as well as between public and private sector banks.     

On takeover of a domestic bank by a foreign one, Swaroop said, A takeover by a foreign bank is just an ownership change and it would not contribute much to the consolidation process in the system.

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First Published: Aug 01 2008 | 3:30 PM IST

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