The Reserve Bank of India said that sixteen domestic banks have not reached the target in priority lending. This includes public sector and private sector banks and the foreign banks. The national banks have to lend 40% of their advances and the foreign banks have to lend 32% for the priority money lending. Agriculture, education, Micro and small business enterprises and the housing come under the priority lending. The RBI did not mention the names of the banks that have failed to achieve the target. During the financial year 2012-13, the banks have sanctioned loans at 6.07 lakh crore Rupees, which is higher than the target of 5.75 lakh crore Rupees.
The banks have registered the growth of 29.8% in the SME credit sector. Sixteen banks of 26 public sector banks, ten of the twenty private sector banks and two of the forty one foreign banks have fallen short of the fixed target, according to the Reserve Bank of India’s report.