"Marking certain percentage of credit portfolio for fixed rate loan is a part of the system to maintain a healthy asset liability managment of the bank," said the sources.

The industry is gradually entering into a greater phase of volitility and new measures of asset liability management have to be devised to protect the bottomlines of banks and institutions, said a top official.

Also the bank is shifting towards building fixed rate long-term assets as corporates are eager to lock in fixed rate loans.

It will have a minimum tenure of three years and maximum tenure of 12 years and the rate will be pegged at bank's medium-term lending rate plus a band which will be linked to comparative maturity government paper and corporate credit riskrating, sources said. All fixed rate loans will have a reset clause after three or five year. The fixed rate loans will have average maturity profile of 12 years.

The loan amount under the fixed rate category has been decided after ensuring the availability of the similar kitty from the liability side.

Bank's statistics shows almost 25 per cent of the bank's fixed deposit gets rolled over after the expairy period, said the sources.

After conducting a market survey, the bank is also planning to launch some of the floating rate liability product shortly.

The Reserve Bank of India had recently allowed the banks to opt for fixed rate loan and floating rate deposit products.