RBI Deputy Governor, K C Chakrabarty on Friday announced that banks' lending rates to certain segments like short-term corporate loans could go up on account to the mis-pricing.

However, it felt that overall rates will remain stable and unaffected.

Banks generally lend to customers, primarily corporate clients, at much lower rates below their benchmark prime lending rate (BPLR), popularly known as the sub-PLR rates.

Amidst galloping food inflation and earlier-than-expected economic recovery but, the RBI, in its third quarterly monetary policy review on January 29, initiated an exit from the easy money regime by lifting cash reserve ratio by 0.75 per cent to 5. 75%.

It is reported that the banking system possess sufficient liquidity to fund the infrastructure sector over the next two to three years, Chakrabarty said, however, adding in the long-term a corporate bond market will have to be well trained to fulfill the soaring the investment demand.

Banks have approached RBI, concerning mandatory liquidity exemption for infrastructure bonds, Chakrabarty prompted that this may not be permitted as there is a possibility similar demand may come for other instruments as well.