The increase has been primarily driven by strengthened priority sector lending (PSL) norms, targeted government initiatives, and increased digitalisation
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
Augurs well for banks with relatively lower organic PSL generation
Bank stocks today: HDFC Bank, AU SFB, Bajaj Finance, Bajaj Finserv, and Axis Bank shares were ruling higher in trade on Tuesday, March 25
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
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
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
The rating agency also affirmed Yes Bank's "Ba3" long-term (LT) foreign currency (FC) and local currency (LC) bank deposit ratings
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
Company aims for strategic adjustments to benefit from the anticipated softening of interest rates
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
The move will reduce the cost of finance and also promote and accelerate the penetration of EVs in the country
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
Analysts positive on stock, expect it to trade in the Rs 2,750-Rs 3,000 range
Currently, 8 sectors are eligible to get lending under the PSL mechanism including agriculture, MSMEs, export credit, housing, education, renewables, and social infrastructure sectors
Analysts see the RBI's announcements to be sentimentally positive for the banking sector even as Covid-19 situation remains dynamic
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
Industry body says funding is currently available only for 6-18 months under various schemes
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
Changes in priority sector lending should be revisited