Lipases was produced by Bacillus subtilis PCSIR NL-38 strain and rape seed oil cake as substrate. Surface fermentation of minimal media in 250ml conical flask under static conditions gave 12.81 U/ml of lipases at 40°C for 48 hours. Lipase activity was monitored titrimatrically. Optimization of physicochemical parameters indicated that PCSIR NL-38 showed maximum lipase production at pH 7 with NH4NO3 as inorganic nitrogen source, glucose as carbon source, FeSO4.7H2O as salt, with 7% inoculum size and 96 hours of incubation