Priority Sector Lending

MSME credit top Rs 40 trillion as of March 2025, grows 20% annually

The increase has been primarily driven by strengthened priority sector lending (PSL) norms, targeted government initiatives, and increased digitalisation

PSL norm easing provides limited room for SFBs to make gains: CareEdge

RBI cuts priority sector lending target for Small Finance Banks from 75 to 60 per cent starting FY26, easing compliance burden but offering limited short-term profit

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

Augurs well for banks with relatively lower organic PSL generation

Financial stocks trade mixed as RBI revises PSL norms; Nifty Bank tops 52K

Bank stocks today: HDFC Bank, AU SFB, Bajaj Finance, Bajaj Finserv, and Axis Bank shares were ruling higher in trade on Tuesday, March 25

J'khand's credit potential for FY26 priority sector lending at Rs 88,303 cr

The credit potential for the priority sector lending in Jharkhand has been projected at Rs 88,303 crore for the next fiscal, an increase of about 64 per cent from the current financial year, an official said on Saturday. It was fixed at Rs 54,008.31 crore for the year 2024-25. Priority sector lending (PSL) is a policy tool aimed at ensuring that key sectors crucial to the nation's development receive adequate financial support. Mandated by the Reserve Bank of India (RBI), PSL obligates banks to allocate a specified proportion of their loans to sectors such as agriculture, education, housing, and small industries. "The credit potential for the priority sector in the state has been projected at Rs 88303.77 crore for the year 2025-26, as against Rs 54,008.31 crore for the year 2024-25, showing an increase of 63.50 per cent," the official said. Earlier, Jharkhand Finance Minister Radha Krishna Kishore launched the state Focus paper 2025-26 emphasising the need for sustainable agricult

MSME industry bodies seek RBI support for easier priority sector lending

The official further said that the RBI only partially restored this classification to the extent of Rs. 20 lakh per borrower. Hence, NBFCs funding to MSEs is now restricted

CII proposes reforms in India's priority sector lending framework

Industry body CII has proposed reforms in India's Priority Sector Lending (PSL) framework, suggesting inclusion of emerging sectors and high-impact sectors like digital infrastructure, green initiatives, healthcare, and innovative manufacturing. Arguing that current Development Finance Institutions (DFIs) like SIDBI and NaBFID (National Bank for Financing Infrastructure and Development) have their roles cut out as they have earmarked sectors to finance, the chamber also suggested setting up of a high level committee to look at the revision of PSL norms and explore the need for any new DFIs to cater to some of the new and emerging sectors. Priority Sector Lending is a policy tool aimed at ensuring that key sectors crucial to the nation's development receive adequate financial support. Mandated by the Reserve Bank of India (RBI), PSL obligates banks to allocate a specified proportion of their loans to sectors such as agriculture, education, housing, and small industries. The framework

Moody's revises outlook on Yes Bank from 'stable' to 'positive'

The rating agency also affirmed Yes Bank's "Ba3" long-term (LT) foreign currency (FC) and local currency (LC) bank deposit ratings

Banks may rework PSL plans for districts as RBI tweaks incentive structure

In a notification last week, RBI said the lists of districts have been updated after a review. These lists will remain valid until FY 2026-27

L&T Finance plans to increase short term, ECB fundraise in FY25

Company aims for strategic adjustments to benefit from the anticipated softening of interest rates

Uttar Pradesh's priority sector lending likely to jump 52% in FY25

Against the aggregate credit flow of Rs 3.75 trillion in FY24, the advances of Rs 5.73 trillion will reflect a year-on-year (Y-o-Y) growth of 52 per cent

FinMin considering proposals to include EVs under priority sector lending

The move will reduce the cost of finance and also promote and accelerate the penetration of EVs in the country

Centre considering inclusion of EVs in priority sector lending category

The government is considering a proposal to include electric vehicles (EVs) in priority sector lending category, a senior official said on Saturday. "We have received a representation to include EV in priority sector. We will look at reworking the priority sector lending requirements for banks," the official said adding the issue has to be discussed with the Reserve Bank of India. As per RBI guidelines, it is mandatory for banks to extend 40 per cent of their adjusted net bank credit to priority sector. Currently, seven sectors -- agriculture, Micro, Small and Medium Enterprises (MSME), export credit, education, housing, social infrastructure, and renewable energy -- are considered for priority sector lending (PSL). Inclusion of EVs in PSL has the potential to increase investor confidence by providing a market signal of ongoing government commitment to the sector. It can also ensure a swift and equitable transition by providing a mandate for financial institutions to direct credit

After meeting Q2 expectations, HDFC's growth outlook appears healthy

Analysts positive on stock, expect it to trade in the Rs 2,750-Rs 3,000 range

EVs, green hydrogen to soon come under priority sector lending: Report

Currently, 8 sectors are eligible to get lending under the PSL mechanism including agriculture, MSMEs, export credit, housing, education, renewables, and social infrastructure sectors

RBI relief measures may cushion NPA blow from second Covid wave: Analysts

Analysts see the RBI's announcements to be sentimentally positive for the banking sector even as Covid-19 situation remains dynamic

SFB loan to MFIs for on-lending to be classified as priority sector lending

The Reserve Bank of Indian has decided to allow the classification of priority sector lending for loans given by small finance banks to micro-finance institutions (MFI) for on-lending to individuals

NBFCs seek special fund from govt for providing 3-5 yrs term loans

Industry body says funding is currently available only for 6-18 months under various schemes

Tamil Nadu opposes provision in Master Directions for priority lending

CM Palaniswami says state seems to have been singled out for adverse treatment as all 32 districts (prior to bifurcation) have been categorised as having comparatively high flow of priority credit

Increased risks for banks

Changes in priority sector lending should be revisited