ibps-so 2016 · Question 375 of 394

A large integrated unit engaged in food and agro-processing, which runs a rice mill, a solvent extraction plant and a fruit pulping line, has asked the branch for an enhancement of its limits, and the credit department must settle how much of the total exposure of the banking system to that borrower will rank as priority sector lending under the head of ancillary activities to agriculture. Beyond that aggregate sanctioned limit the exposure continues to be good business but ceases to count towards the bank's priority sector achievement. The o cer is reminded that the ceiling applies to the aggregate limit sanctioned to the borrower by the banking system as a whole and not to the limit sanctioned by this bank alone, so the consortium position has to be ascertained before the classi cation is recorded. The aggregate sanctioned limit per borrower from the banking system for food and agro-processing, up to which the loan ranks as priority sector lending, is

1. A₹10 crore
2. B₹25 crore
3. C₹50 crore
4. D₹75 crore
5. E₹100 croreCorrect