Adjusted Net Bank Credit: Definition & Computation of ANBC

Adjusted Net Bank Credit (ANBC):

Adjusted Net Bank Credit (ANBC) details are available here. It is an important banking awareness topic for the aspirants preparing for bank exams and interviews. So, read the full article and know the complete information regarding Adjusted Net Bank Credit (ANBC).

Adjusted Net Bank Credit (ANBC) is a term used to target various sectors under Priority Sector Lending. The targets and sub-targets under priority sector lending are linked to Adjusted Net Bank Credit (ANBC).

Domestic commercial banks have to set a target of 40% of the Adjusted Net Bank Credit (ANBC) for the advances to priority sector lending while foreign banks have to set a target of 32% for the same. Adjusted Net Bank Credit (ANBC) comprised of the total credit forwarded by the banks together with other investments made by it. Total credit includes Loans forwarded by banks, overdrafts forwarded by banks to the customers, etc.

Adjusted Net Bank Credit (ANBC) = Loans + Investments

Computation of Adjusted Net Bank Credit (ANBC):

In this table, the computation of Adjusted Net Bank Credit (ANBC) is available for your reference.

Bank Credit in India (As prescribed in item No.VI of Form ‘A’
(Special Return as of March 31st) under Section 42 (2) of the RBI Act, 1934.
Bills Rediscounted with RBI and other approved Financial Institutions II
Net Bank Credit (NBC) III (I- II)
Investments in Non-SLR categories under HTM category + other investments eligible to be treated as Priority Sector IV
Adjusted Net Bank Credit (ANBC) V (III + IV)


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Check all the terms here regarding the Adjusted Net Bank Credit (ANBC).

1) Bank Credit

1.Bank Credit of a bank is the loans, cash payments, overdrafts provided by the bank to customers.

2.It also contains the bills purchased and bills discounted.

3.Bills purchased are the bills that have been purchased as a security for the advances given. For example, ABC Company goes to the bank for taking a loan. Now it has to provide any security against that loan, so that bank can recover the money if the company is not able to pay the money back in stipulated time.

4.Instead of keeping any asset as security, it gives a bill to the bank saying that it will give the amount of money plus interest after a stipulated time. So in this way the bank has purchased a bill against giving the amount written in the bill to the company.

5.Bills discounted are the bills that are purchased after discounting money. For example, A person buys a product from the market and promises to pay the money at some later time. The shopkeeper will give a bill to the customer. If the shopkeeper wants the money before that time, he can go to the bank with the bill. Now the bank will not give the entire money written on the bill to the shopkeeper, but it will deduct some money (known as bill discounting) from the bill and lent the remaining to the shopkeeper.

6.Now when the shopkeeper receives the money from his customer, he can pay it back to the bank. The bank deducts the money or discounts the bill in order to keep the discounted money with it as interest.

2) Bills Rediscounted with RBI and other approved Financial Institutions

1.Banks also do the rediscounting of bills. We have read in the last paragraph about bill discounting. An example of bill rediscounting continues from there.

2.Now if the bank wants that money before the stipulated time period, it can present that bill to RBI or other Financial Institutions and get that bill rediscounted. So the bank will pay the amount to RBI or other Financial Institutions after it gets the money back from the shopkeeper.

3) Net Bank Credit (NBC)

1.The third term is Net Bank Credit which is calculated as Bank Credit minus Bills Rediscounted.

2.The amount from Bills rediscounted gets minus from Total Bank Credits because, when a bank rediscounts a bill, it gets some amount from RBI or other Financial Institution to which the bank presented the bill for rediscounting. So it is not the credited amount but the debited amount to the bank.

4) Investments in Non-SLR categories under HTM (Held To Maturity) category + other investments eligible to be treated as a priority sector.

1.We know that banks have to maintain their deposits in liquid assets with themselves before granting credits or loans to customers in order to meet future contingencies.

2.The liquid assets are such as government securities, bonds and precious metals like gold are the assets that can be converted to cash at any time. And the ratio of prescribed liquid investments to deposits is termed as Statutory Liquidity Ratio (SLR).

3.Now other than the SLR investments, investing in various capital market instruments such as stocks and bonds issued by public and private sector companies and commercial papers, investment in mutual fund schemes, etc. comes under the Non-SLR investments.

4.Held To Maturity means the investments which remain for a specified time period i.e. till the maturity and also the investments that have fixed or determinable payments.


Here we have added some FAQs regarding the Adjusted Net Bank Credit (ANBC).

Q: What is Adjusted Net Bank Credit (ANBC)?

A: ANBC is the net banking credit after taking into account bill discounting, non-SLR securities, and other exemptions via long-term bonds.

Q: What is ANBC full form in banking?

A: The full form of ANBC is Adjusted Net Bank Credit.

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