India cbank ups priority loan target for foreign banks
MUMBAI, July 21 |
MUMBAI, July 21 (Reuters) - The Reserve Bank of India (RBI) has increased the priority sector lending target for foreign banks with 20 branches or more to 40 percent from 32 percent in a phased manner over a maximum period of five years starting April 1, 2013.
In a revised guidelines on priority sector lending issued on Friday, the central bank said these lenders would have to submit an action plan for achieving the target over a specific time frame to be approved by the RBI.
State-run banks already have a priority sector lending target of 40 percent.
Typically, priority sector lending includes small value loans to farmers for agriculture and allied activities, loans to micro and small enterprises and other low income groups.
The three biggest foreign banks in India are Standard Chartered, HSBC and Citigroup.
Foreign banks with less than 20 branches will continue to have a target of 32 percent, the RBI said. (Reporting by Shamik Paul; Editing by Ron Popeski)
- Tweet this
- Share this
- Digg this