Proposed base rate for banks to bring transparency Industry body Assocham has said the Reserve Banks panel suggestion to have base rate for lending would ensure transparency and efficiency in pricing loans,which the current system of BPLR does not provide. The current methodology adopted by banks for calculating benchmark prime lending rate (BPLR) is not transparent since it is never disclosed to the public, it said in a statement. The RBI working group recommended the replacement of the BPLR system with a base rate mechanism. With this proposed mechanism,all banks will be required to declare a base rate and charge interest rates over that depending upon the credit profile of the borrower and repayment period. BPTP sells housing projects of Rs 1,600 crore in six months New Delhi-based real estate company BPTP has sold properties worth Rs 1,600 crore during the first half of the current fiscal from its three housing projects in Faridabad in the national capital region. The company has sold nearly 7,000 units in these three projects,part of a 1,900 acre integrated township BPTP Parklands. According to BPTP director Sudhanshu Tripathi: All the three projects are completely sold out. We have sold more than 6,000 independent floors since April in two projects. The company has also sold about 800 premium flats. The company has earned revenues to the tune of Rs 1,600 crore by selling these units,Tripathi added. RBI likely to keep key rates unchanged The Reserve Bank of India (RBI) is likely to keep its benchmark lending and borrowing rates unchanged in its monetary policy review next week,but may start hiking them from April 2010,finds out Macquarie Research. Macquarie research analyst Rajeev Malik said,We maintain that the RBI would keep rates unchanged next week,and probably begin hiking them from April 2010. He said The RBI can also keep the cash reserve ratio (the amount of funds that banks have to park with RBI) unchanged on October 27,but may hike it before the next review in January 2010. At present,the cash reserve ratio (CRR) stands at five per cent,while the repo rate (the rate at which banks borrow from RBI) is at 4.75 per cent and reverse repo (the rate at which RBI borrows money from banks) stands at 3.25 per cent.
