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Banks’ priority lending growth slows in FY25
Financial Express Bengaluru
|December 30, 2025
THE GROWTH IN priority sectorlending (PSL) for scheduled commercial banks slowed to 12% in FY25 from 16.9% a year ago, according to the Trend and Progress of Banking report, released by the Reserve Bank of India (RBI) on Monday.
The moderation in growth was led by private banks, while public sector banks (PSBs) posted a marginal increase, it noted. However, all banks managed to achieved their PSL targets, the RBI said.
Currently, banks should lend 40% of their total credit to priority sectors, while the RBI revised total PSL target for small finance banks to 60% from 75%, effective April 1, 2025.
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