IIPM BEST B-SCHOOL
The
Reserve Bank has been continuously emphasising on the need to give support to agriculture and SSI. As a regulatory stipulation, both Indian and foreign banks are required to extend 40% and 32% of their Net Bank Credit (NBC) towards priority sector. More encouraging is the fact that RBI is considering a proposal to expand the definition of NBC. Enlarging the base on which priority sector lending targets are set would result in increased credit flow to priority sector by a commendable Rs.500 billion. Though RBI’s priority investments have been criticised by ‘otherwise’ Mckinsey (which termed priority lending as an unproductive one), yet we can only be thankful to our ‘wise’ Indian banks who are currently lending 57% of total credit to this sector. It’s only the resurgence of agriculture, which can catapult India’s GDP growth to the magic figure of 10%.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
The
Reserve Bank has been continuously emphasising on the need to give support to agriculture and SSI. As a regulatory stipulation, both Indian and foreign banks are required to extend 40% and 32% of their Net Bank Credit (NBC) towards priority sector. More encouraging is the fact that RBI is considering a proposal to expand the definition of NBC. Enlarging the base on which priority sector lending targets are set would result in increased credit flow to priority sector by a commendable Rs.500 billion. Though RBI’s priority investments have been criticised by ‘otherwise’ Mckinsey (which termed priority lending as an unproductive one), yet we can only be thankful to our ‘wise’ Indian banks who are currently lending 57% of total credit to this sector. It’s only the resurgence of agriculture, which can catapult India’s GDP growth to the magic figure of 10%.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
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