The Reserve Bank of India is unlikely to revise interest rate in the forthcoming slack season Credit Policy but focus on measures to improve the financial health of banks, bankers and bond-dealers said on Thursday.

"I expect Bank Rate to remain where it is now (at 6 per cent). We have a comfortable liquidity and so the rates are expected to remain stable," Oriental Bank of Commerce chairman B D Narang said on the sidelines of a MAIT seminar in New Delhi.

He said if inflation, which is mainly driven by the petroleum prices, remain stable, it would be beneficial to the country.

An official of PNB Gilts said Bank Rate has lost its relevance and hence it is unlikely to be revised in the credit policy.

"There is enough liquidity and there might be some change in the Repo Rate," the official said.

Narang said that banks' lending rates to agriculture and small and medium scale sectors may witness a downward movement in the coming days, as the rates were quite high compared to the lending rates to other sectors.

The reduction in lending rates on agriculture and SMEs was mainly on account of the government directive to banks for lending funds at 2 per cent less than prime lending rates now at about 10.50-11 per cent.

The OBC chief, however, ruled out a further decline in home loan rates. "It has bottomed out. After six months, when there will be a demand for credit from the industry, home loan rates may strengthen," he said.

Home loan rates for a five-year maturity period are hovering at about 7-7.5 per cent.

Instead of revising the Bank Rate, Narang said RBI may focus on policies to improve transparency in banks and improve their quality of assets.

On the recent dividend norms stipulated by RBI, he said: "It is justified to ensure that banks clean up the balance sheet."

It was also required to make Indian banks more credible and globally competitive, he said.

On the lines of internationally acclaimed Basle-II norms, RBI has stipulated that banks can declare dividends only if their non-performing assets was less than 3 per cent and capital adequacy ratio was above 12 per cent.

On the operationalisation of Credit Information Bureau of India Ltd with a handful of NPA accounts, Narang said the data with the bureau was "limited" and banks have already reduced a significant portion of their bad debts with small borrowers through one-time settlements and enforcement of the Securitisation Act.