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Computation of Adjusted Net Bank Credit(ANBC)

Computation of Adjusted Net Bank Credit(ANBC) :

Bank Credit in India [As prescribed in item No.VI of Form ‘A’
under Section 42 (2) of the RBI Act, 1934].
I
Bills Rediscounted with RBI and other approved Financial
Institutions
II
Net Bank Credit (NBC)*
III (I – II)
Bonds/debentures in Non-SLR categories under HTM category+
other investments eligible to be treated as priority sector
+Outstanding Deposits under RIDF and other eligible funds with
NABARD, NHB, SIDBI and MUDRA Ltd. on account of priority
sector shortfall + outstanding PSLCs
IV
Eligible amount for exemptions on issuance of long-term bonds
for infrastructure and affordable housing as per circular
DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014.
V
Eligible advances extended in India against the incremental
FCNR (B)/NRE deposits, qualifying for exemption from
CRR/SLR requirements.
VI
ANBC
III+IV-V-VI

 

* For the purpose of priority sector computation only. Banks should not deduct / net any amount like provisions, accrued interest, etc. from NBC

A. The computation of priority sector targets/sub-targets achievement will be based on the ANBC or Credit Equivalent Amount of Off-Balance Sheet
Exposures, whichever is higher, as on the corresponding date of the preceding year.
B. For the purpose of priority sector lending, ANBC denotes the outstanding Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] minus bills rediscounted with RBI and other approved Financial Institutions plus permitted non SLR bonds/debentures under Held to Maturity (HTM) category plus other investments eligible to be treated as part of priority sector lending (e.g. investments in securitised assets).
C. The outstanding deposits under RIDF and other funds with NABARD, NHB, SIDBI and MUDRA Ltd. in lieu of non-achievement of priority sector lending targets/sub-targets will form part of ANBC.
D. Advances extended in India against the incremental FCNR (B)/NRE deposits, qualifying for exemption from CRR/SLR requirements, as per the
Reserve Bank’s circulars DBOD.No.Ret.BC.36/12.01.001/2013-14 dated August 14, 2013 read with DBOD.No.Ret.BC.93/12.01.001/2013-14 dated January 31, 2014 and DBOD mailbox clarification issued on February 6,2014 will be excluded from the ANBC for computation of priority sector lending targets, till their repayment.
E. The eligible amount for exemption on account of issuance of long-term bonds for infrastructure and affordable housing as per Reserve Bank’s
circular DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014 will also be excluded from the ANBC for computation of priority sector lending
targets.
F. For the purpose of calculation of Credit Equivalent Amount of Off-Balance Sheet Exposures, banks may be guided by the Master Circular on Exposure Norms issued by the Department of Banking Regulation

Bank Audit | Tina Saha |