Dhanlaxmi Bank’s Plea for Priority Sector Waiver Rejected by RBI

Dhanlaxmi Bank’s Plea for Priority Sector Waiver Rejected by RBI

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Asia Bizz: Dhanlaxmi Bank’s plea for a one time waiver of priority sector lending target has recently been rejected by the Reserve Bank Of India (RBI). People familiar with the development said that the RBI has declined the priority sector waiver, which the bank had requested citing liquidity issues.

In the past two months, the bank’s balance sheet had grown by about Rs 1,500 crores in the past two months. The bank is at present facing management changes and may short fall of Rs 1,400 crore in the rural based priority sector lending, according to an anonymous source.

There are chances that the figure may come down to Rs 700 crore after some classifications of loans and last minute disbursements.