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RBI's revised PSL norms: HDFC Bank, Federal Bank, IndusInd Bank to benefit

Augurs well for banks with relatively lower organic PSL generation

RBI, Reserve Bank of India
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While the PSL guidelines have been revised, RBI has maintained the overall PSL target at 40 per cent of adjusted net bank credit (ANBC) for banks.

Subrata Panda Mumbai
The revised priority sector lending (PSL) norms, announced by the Reserve Bank of India (RBI) on Monday aimed at improving credit flow into sectors like housing and clean energy, among others, will provide relief to some major banks, including HDFC Bank, RBL Bank, Federal Bank, and IndusInd Bank, to meet the targets organically. The revised norms will come into effect from April 1, 2025.
 
The PSL guidelines increased several loan limits, including housing loans; broadened the purposes based on which loans may be classified under renewable energy; and expanded the list of eligible borrowers under the category of “weaker sections”,