ABSTRACT Objectives In recent years, audio signal processing begins its outbreak on a global scale, which has altered the global market and has rapidly extended out as a fundamental design in various industries. Lifting based method is frequently implemented in many applications such as image processing and audio processing because it has some advantages that faster implementation with minimum computational cost. Methods In this proposed work, a Novel Lifting based Filter Bank (NLFB) is proposed using a modified variable filter aimed at digital hearing aid devices. This filter bank design has some mandatory constraints, such as hardware complexity, power consumption, and delay. The proposed method is designed with four lifting steps such as split, predict, update and merge to make the perfect reconstruction in analysis and decomposition in synthesis bank. The performance analysis of the proposed method is discussed in this article. Results The proposed method consumes less power, up to 45mW, and a minimum delay between 85ns and 91.1ns when compared to traditional methods. Conclusion The proposed design output consumes 32 % of minimum hardware components, 12% of low power compared to interpolated filter bank and 6% of delay is reduced using Modified Variable Filter (MVFB).