Widening of auditory filters in persons with sensorineural hearing impairment leads to increased spectral masking and degraded speech perception. Multi-band frequency compression of the complex spectral samples using pitch-synchronous processing has been reported to increase speech perception by persons with moderate sensorineural loss. It is shown that implementation of multi-band frequency compression using fixed-frame processing along with least-squares error based signal estimation reduces the processing delay and the speech output is indistinguishable from pitch-synchronous processing. For real-time operation, the processing is implemented using a fraction of the computing capacity of the 16-bit fixed point processor TMS320C5515.