Apart from bitter experience of the past and need for risk diversification, earning potential presented by priority sector lending is another reason why banks should look elsewhere for better business opportunities. Having said that, we have already been witnessing a conscious move by the banks into ‘retail’ segment from corporate.
I am not suggesting that movement to retail is not okay, but from overall economic and credit perspective, retail loans are not productive loans in 1/7  BIS central bankers' speeches  the hands of the borrower as they neither generate income nor they lead to further economic activities.