The total outstanding loans to minority communities at the end of March 2009 works out to 12.41 per cent of the total priority sector advances of PSBs, which is short of the 13 per cent target set for the year.
| THE BREAK-UP | |||
| (In Rs crore) | Outstanding amount | In 2008-09 % growth | |
| 2008 | 2009 | ||
| State Bank of India | 15,545.00 | 21,376.00 | 37.5 |
| Punjab National Bank | 5,953.08 | 7,319.43 | 22.9 |
| Canara Bank | 4,539.17 | 6,425.71 | 41.5 |
| Bank of India | 3,526.00 | 4,818.45 | 36.6 |
| Bank of Baroda | 2,321.00 | 3,613.92 | 55.7 |
| Union Bank of India | 2,744.20 | 3,216.20 | 17.2 |
| Syndicate Bank | 2,578.35 | 3,725.19 | 44.4 |
| Source: Government data | |||
According to finance ministry data, lending to the minority communities stood at 9.67 per cent at the end of March 2007-08.
In October 2007, the government had directed state-owned banks to step up lending to them from 9 per cent to 15 per cent of total priority sector advances until March 2010.
PSBs would have to disburse loans worth Rs 47,598 crore in the current financial year to reach the target of Rs 1,30,462 crore by March 2010.
Among the large public sector banks (with total business of Rs 2 lakh crore and above), State Bank of India (SBI) is set to increase its outstanding credit to Rs 27,720 crore for 2009-10 from Rs 21,317 crore.
IDBI Bank, which has a small portfolio of Rs 145.49 crore, is preparing to scale up its outstanding loan base to Rs 5,301 crore.
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A senior public sector bank official said that while banks were giving loans to the minority communities as part of the PSL target, not all of them are extended at a concessional rate. Many projects and proposals are commercially sound, carrying market linked lending rates.
The government has identified five communities for purpose of priority sector lending. They are Sikhs, Muslims, Christians, Zoroastrians and Buddhists. It has zeroed in on 121 minority concentration districts, which have at least 25 per cent minority population for the lending programme. This excludes those states and union territories (UT) where minorities are in majority.
Jammu & Kashmir, Punjab, Meghalaya, Mizoram, Nagaland and Lakshwadeep are some of states/UTs where designated minorities are in majority.
Public sector banks opened 537 branches in minority concentration districts and areas. SBI opened 177 branches, followed by Central bank of India (40), Bank of India (34) and Punjab National Bank (31).