Priority Sector Lending

Finance and textiles secretaries to chair meeting with managing directors of SBI, PNB, BoB and others to focus on green financing, MSME credit ratings and subsidy bottlenecks

L&T Finance may focus more on loans with PSL benefit to reduce borrowing cost, says CEO Sudipta Roy

The company will be launching new products in Q1FY27 as part of the Lakshya 31. These products will be mixed of secured and unsecured, Roy said.

Ease in priority sector norm gives small finance banks room to reduce stress

Listed small finance banks saw their net profit drop 43 percent year-on-year for the March quarter of FY25

Revised PSL norms to improve bank credit to weaker section, boost financial inclusion

An IIFL report also said that the easing of PSL guidelines should help banks with relatively lower organic PSL generation such as RBL Bank, IndusInd Bank and Federal Bank in Financial year 2023-24.

CII seeks reforms in India's priority sector lending framework

Priority Sector Lending is a policy tool aimed at ensuring that key sectors crucial to the nation’s development receive adequate financial support.

Vault Matters: Priority sector lending or profitable sectors lending?

Priority sector loans have for banks become a source of profitability because RBI’s assumption that harmonising regulations for certain asset classes across intermediaries will unleash competition and drive down interest rates hasn’t worked. Rates today are relatively high for borrowers at the bottom of the pyramid. This has social implications 

Priority sector lending boosts banks’ profitability: RBI study

Private sector banks have warmed up to priority sector lending after inclusion of small business loans under it

EV, green hydrogen may come under priority sector lending: Govt Official

Under the rules, a banking entity needs to lend 40 percent of the adjusted net bank credit to the so-called priority sector or economically weaker sections.

MC Explains: What are RBI norms for priority sector lending for banks?

These prescribe the proportion of loans that should be made to economically disadvantaged sections. Meeting these targets are considered while granting regulatory clearances and approvals for various purposes.

HDFC–HDFC Bank merger – What’s in it for shareholders?

Despite synergies flowing out of the merger of HDFC with HDFC Bank, there are several unknowns as far as regulations are concerned

Trader associations question denial of delayed payment benefits to retailers and wholesalers

Although retail and wholesale traders have been reinstated as MSMEs, the ministry said they cannot approach facilitation councils to settle disputes over delayed payments by their customers

Explained : Govt reinstates retailers, wholesalers as MSMEs, what benefits will they get, what are the concerns

Moneycontrol explains what is the present definition of MSMEs, when was wholesale and retail trade removed as MSMEs, what benefits will the trades get now and what are some of the concerns raised by the industry associations.

Hospitals, vaccine makers welcome RBI move on easier liquidity to health sector

RBI Governor Shaktikanta Das announced on May 5 an on-tap liquidity window of Rs 50,000 crore to boost provision of immediate liquidity for ramping up COVID-related healthcare infrastructure and services in the country.

Extend one-time restructuring of MSME advances until March 31 next year, FIDC tells RBI

The Finance Industry Development Council has sought the inclusion of 'retail trade' and 'wholesale trade' as activities recognised by the Ministry of MSMEs for registration.

MFIs seek change in RBI's priority sector lending rules to tap small finance bank loans

Presently, only direct lending to economically weaker sections constitute PSL loans for SFBs.

Easier loans to start-ups — A bankable proposition?

Lenders must take a hard look at the business model of these new-age entrepreneurs before they loosen their purse strings

RBI issues draft guidelines on small finance banks

These small financial banks (SFBs) are likely to submit their comments on draft norms by Tuesday and final guidelines on the same are expected soon.

Government encourages housing the non income tax way

Balwant Jain explains all the incentives government offers to ensure “housing for all” becomes a reality.

New priority sector lending norms to help meet targets: SBI

SBI chairman Arundhati Bhattacharya says increasing the amount of home loans for PSL is a positive step. According to her, overall asset quality pressure may ease in near-term.

RBI releases revised PSL norms for banks

The Reserve Bank of India (RBI) today revised priority sector lending (PSL) norms, adding new segments such as micro, small and medium enterprise (MSME), social infrastructure and renewable energy under the ambit of priority sectors.

Don't want to merge with foreign bank: Karur Vysya Bank

If subsidiaries are set up and the foreign banks want to give competition to Indian banks there are challenges because it is not going to be that easy, says K Venkataraman, MD & CEO, Karur Vysya Bank.

Raghuram hits first-ball sixer; looks set to bowl mkts over

Raghuram Rajan, RBI governor emphasised that the changes proposed may be “risky” but “as India develops, not changing is even riskier. We have to keep what is good about our system, of which there is a tremendous amount, even while acting differently where warranted.”

All set to comply with RBI norms on banking license: IDFC

IDFC is all set to meet the requirements of RBI guidelines for new banking license, the most important step being creation of non-operating holding finance company.

Looking to up loans to agri, SME: Bank of Baroda's Mundra

"I have three priorities. I will continue to focus on asset quality. Secondly, I want to slightly shift the gear to bring a more widespread growth like in the credit side instead of remaining too much wholesale banking focused. Finally, I want to enhance the technology reach," said S S Mundra, the new CMD of Bank of Baroda.

RBI warns banks of violating priority sector lending norms

The Reserve Bank of India (RBI) warned banks of breaching priority sector lending norms. It asked lenders to stop the practice of including off-balance items in meeting priority sector credit targets. Off-balance sheet items include instruments like letter of credit (LC), bank guarantee, derivative instruments (currency hedging) and others.