The Hindu Business Line : PSBs may miss priority sector advances target

NEW DELHI: Public sector banks (PSBs) are likely to miss their 15 per cent priority sector advances target lending to minorities this fiscal, as the Government on Tuesday said this will be met by 2010-11.

In 2007, in order to enhance financial assistance to minority communities, the Government had suggested public sector banks to raise lending to minority communities, including Muslims, Christians, Sikhs, Buddhist and Parsi to 15 per cent of total priorit y sector advances by 2009-10.

The target set was 10.60 per cent in 2007-08 and 13 per cent and 15 per cent in the subsequent years.

“We have already met 12.5 per cent and will get to 15 per cent in the coming fiscal,” the Minority Affairs Minister, Mr Salman Khurshid said. He said the target so far achieved is appreciable and the banks will be able to meet the target by 2010-11.

The roadmap suggested to public sector banks (PSBs) for lending to minorities is in line with Prime Minister Mr Manmohan Singh's 15-point programme for the welfare of minorities.

The programme also seeks PSBs to step up their lending to minorities from 9 per cent to 15 per cent in three years from about middle of 2007.

Domestic commercial banks have to lend 40 per cent of net loans to priority sectors. Within priority sectors, domestic commercial banks have to give 10 per cent of their net lending to weaker sections. - PTI

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