Banking · Priority Sector Lending
A Foreign Bank with 20 or more branches in India is evaluating its priority sector obligations. The bank has achieved an overall priority sector achievement of 42 percent of ANBC. However, its lending to the Export Credit sector is 15 percent, and its lending to Social Infrastructure is 2 percent. Which of the following statements accurately reflects the compliance status of this bank regarding Export Credit under the current guidelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank has exceeded its specific sub-limit for Export Credit which is capped at 2 percent of ANBC.
- 2Export Credit is only counted if the bank fails to meet the Agriculture sub-target.
- 3Export Credit up to 32 percent of ANBC is eligible for priority sector classification for these banks.✓
- 4Export Credit is not counted towards the priority sector for foreign banks with 20 or more branches.
Correct answer
Export Credit up to 32 percent of ANBC is eligible for priority sector classification for these banks.
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