- Recently SFBs’ priority sector lending in total lending declined for the 4th consecutive year during FY21, which accounts for more than 28% of total loans as of March 2021-end.
- According to RBI data, The share of SFBs’ PSL in total lending declined from 76% in FY20 to 71.8% in FY21.
- Considering the above factors this advisory has been issued by RBI to keep SFBs in tune with differentiated licenses.
- Besides gross non-performing assets (GNPAs) of SFBs rose to 5.4% of gross advances as of March 2021-end, against 1.9% as of March 2020-end.
- It has been observed that the sustainable growth of SFBs, particularly their business model and governance, should be redesigned after considering the developments in this sector.
Question:
Q.1 According to RBI data, total lending declined from 76 percent in FY20 to ________ FY21.a. 68.9%
b. 71.8%
c. 72.8%
d. 70.1%
