Investor Presentaiton
Priority Sector Lending - Key Strategic Initiative
INDOSTAR
What are the priority
sectors?
Under RBI guidelines, loans given to
following sectors qualify for Priority
Sector Lending:
•
Agriculture
Micro, Small & Medium
Enterprises (MSME)
Export Credit
Housing loans of up to Rs. 35
lakh, for dwellings costing less
than Rs. 45 lakh, are treated as
priority sector lending (PSL)
What is the RBI
guideline for Banks
around PSL?
1) Domestic commercial banks
(excl. RRBs & SFBs) & foreign
banks with 20 branches and
above:
40% of
Adjusted Net Bank Credit
(ANBC) or
⚫ Credit Equivalent of Off-Balance
Sheet Exposure (CEOBE)
2) Small Finance Banks (SFB)
75% of ANBC as computed in
para 6 below or CEOBE whichever
is higher
What is the qualifier to
get an IndoStar loan
tagged as PSL?
Across the IndoStar portfolio, here
are the criteria that is used to tag
loans as PSL
•
•
*
CV: Udyam (MSME) Registration
SME: Udyam (MSME)
Registration
Housing: All loans for housing
units <45 Lakhs
What is the advantage
to IndoStar?
1) Given the RBI directive to banks
to meet 40% of ANBC and 75%
for SFBs as PSL, there is a clear
market for high quality PSL
books
2) It is in IndoStar's interest to build
the PSL book, as these books can
trade at a premium for DA
transactions towards the end of
the financial year, improving the
RoA for the company
1=1
☑
CH
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