New Delhi, 25 March (IANS). Banks with housing loan portfolio will benefit from changing the priority sector lending (PSL) rules by the Reserve Bank of India (RBI). It will also increase competition in the renewable energy sector. This information was given by experts on Tuesday.
It was announced by RBI on Monday that it has increased the loan limits of housing for PSL and also expanded categories under which the loan can be classified as a renewable energy loan.
The revised rules will be effective from April 1.
According to the ADTV Profit report, SBI, HDFC Bank, ICICI Bank and Axis Bank are expected to benefit from the increase in Housing Loan limit in PSL.
At the end of the December quarter, HDFC Bank had the largest retail morgase book of Rs 8.17 lakh crore, followed by a retail morgase book of Rs 7.92 lakh crore, ICICI Bank with Retail Morgase Book of Rs 4.27 lakh crore and Axis Bank had a retail morgue book of Rs 1.67 lakh crore.
According to the NDTV Profit report, the renewable energy sector competition is expected to increase, as RBI has increased the scope of PSL loan in this category.
Loans up to Rs 35 crore will now come under PSL for renewable energy -based power generation, public utility, street lighting system and 35 crore rupees to provide electricity to remote villages.
For individual families, now the loan limit will be Rs 10 lakh per borrower. “Banks are already competing aggressively to finance renewable energy projects and the move may lead to even more competition for small loans in this sector,” the report said.
-IANS
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