The RBI has revamped priority sector lending norms by upping credit under the head for health infrastructure and also the geographical spread of priority sector is going to be monitored, more weightage on loans going to areas where less priority sector credit has been given.

In an interview to CNBC-TV18, Saloni Narayanan, Deputy MD of SBI spoke at length about how they plan for moratorium to restructuring in the retail loans.

Speaking about home loan, she said, “The universe for restructuring here is going to be 29 lakh and out of which we expect that 20 percent of this would be opting for restructuring—that’s our estimate.”

When asked about the inclusion of startups in the priority sector, Narayanan said, “It’s a good step considering that India is a country of start-ups, but there are some challenges in financing these start-ups.”

Speaking about the challenges faced in financing a start-up, Narayanan said, "It’s a win-win for all if we come out with right kind of products, but from bank’s perspective I would say we are not doing this and we would definitely be looking at some kind of a guarantee from the government because as of now financing a start-up is very difficult."

We are engaging with the government to address multi-fold challenges in financing start-ups, she said.

“They do not have cash flows to help us arrive at a limit to be given to them, they do not have any performance evaluation matrix and also they do not have any collateral and the time taking for them to come into profit will be longer, so there are challenges in terms of this. Therefore, we are engaging with the government, with the ministry of commerce and if it works out we will come out with a product suited for all start-ups,” added Narayanan.

Speaking further about the same, she said, “I do agree that we need to finance them and it is going to bring down their cost as far as start-ups are concerned and their dependence on venture capitals and investors will go down.”

Watch the video for more