Page 2 - Priority Sector Lending

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

Priority sector lending: Farms, education pose challenges

As on Aug 18, education loans outstanding were Rs 59,300 cr against Rs 61,500 cr as on Aug 19, 2016

Priority sector lending: Missing the woods for the trees?

Tweaking existing guidelines will help align priority sector lending with current realities