Banks neglecting the poor

.........when the Central Government reduced its capital share in the public sector banks and issued their shares to the public, the banks' attention shifted to higher profits. Some of the steps taken by RBI and the Government during the years also helped the bankers to dilute their role in direct lending to the priority segments. Treating investments in certain funds of NABARD/SIDBI as lending to agriculture and small-scale industries, and treating loans to NBFCs for onward lending to priority sectors as priority sector advances, were among the new developments................

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