Current Affairs · Priority Sector Lending
A large domestic Private Sector Commercial Bank is evaluating its lending portfolio under Priority Sector Lending (PSL) for the financial year ended March 31, 2025. The bank has an Adjusted Net Bank Credit (ANBC) of INR 10,000 crores. The bank's actual lending to the Weaker Sections category is INR 900 crores. Based on the RBI guidelines applicable for FY 2024-25, which statement is correct regarding the bank's compliance status for the Weaker Sections sub-target?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank has successfully met the sub-target because the requirement is capped at 5% of ANBC.
- 2The bank has successfully met the sub-target because the requirement is only 8% of ANBC.
- 3The bank has failed to meet the sub-target because the requirement for domestic commercial banks in FY 2024-25 is 11.5% of ANBC.✓
- 4The bank has failed to meet the sub-target because the requirement is 12% of ANBC.
Correct answer
The bank has failed to meet the sub-target because the requirement for domestic commercial banks in FY 2024-25 is 11.5% of ANBC.
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