New Delhi, March 26 -- The Reserve Bank of India (RBI) should include loans given to infrastructure projects--such as roads, ports, railways, airports, highways, and the energy sector--under priority sector lending (PSL) or exempt them from the calculation of Adjusted Net Bank Credit (ANBC) for PSL targets, suggests a report by State Bank of India (SBI)

The report highlighted that large banks often struggle to meet PSL targets. To address this issue, it recommends treating infrastructure loans similar to infrastructure bonds, which are already exempt when raised for funding infrastructure and affordable housing. This change, the report argued, will help banks manage their PSL requirements more effectively.

It said, "As big banks continu...