The data released by the Reserve Bank of India (RBI) last week shows a pick up in bank credit, led by credit growth of large companies. As a consequence, the total bank credit grew by 12.2% in the financial year 2018-2019. The sectoral composition of the bank credit growth shows a sharp increase in credit to infrastructure which grew at 18.5% in the year. Among the “healthy” banks, the Punjab National Bank shows negative credit growth and 16.3% of assets as gross NPAs. The overall picture emerging from the latest data on bank credit highlights the lack of fundamental reform in the banking sector.

Source: Hindustan Times May 05, 2019 04:52 UTC