CRR is the percentage of deposits which a commercial bank like HDFC Bank has to park with the central bank for which it does not earn any interest, while SLR is a percentage of deposits which are mandated to be invested in government securities. A non-bank lender is exempt from the same requirements and HDFC Bank had sought leeways on compliance. On PSL, the RBI has told the bank that adjusted net bank credit may be calculated considering one-third of the outstanding loans of HDFC as on the effective date of the amalgamation for the first year, and the remaining two-thirds of the portfolio of HDFC shall be considered over a period of next two years equally. Under the PSL norms, commercial banks are required to devote over 40 per cent of their overall advances to areas marked as priority sectors for the emancipation of certain marginalized sections of society, whereas a non-bank lender like HDFC does not have to comply with such mandates.