We have transited from the prime lending rate (PLR) system (1994) to the benchmark prime lending rate (BPLR) system (2003), the base rate system (2010), and the present marginal cost of funds based lending rate (MCLR) system (2016).
The first is sustainable U.S. economic strength. The second is uncertainty on the timing and pace of U.S. monetary policy normalization. Third, lower oil prices appear to be here to stay for a while, and prices could even fall further before the trend reverses. On the domestic side, three issues are also predominant.