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Priority Sector Lending Certificates a Hit Among Banks
August 08, 2017
Popular lenders such as YES Bank, HDFC Banks, Citibank, etc. seem to have taken a shine to the new Priority Sector Lending Certificates(PSLCs) as the market observed trades worth Rs. 40,000 in the first quarter itself.
Banks are finding the PSLCs a good option for meeting their priority lending targets as they can conveniently buy these from other lenders which have priority loans in surplus without having to transfer assets.
Crisil Rating Director Ajit Velonie said that there is a considerable demand for PSLCs from both private and foreign banks. However, it’s more in the latter as they are required to increase their priority sector loan proportion by 2% on an annual basis.
