Of this, Rs6.83 trillion belong to public sector banks. Around 69% of the bank’s loan watch list of Rs7,941 crore is from the power sector. In case of agriculture loans, sector watchers are hopeful that once details of the schemes are out, there could be some revival. Credit growth is seen weak because of lack of demand and the limited ability of public sector banks to grow due to capital constrains. State-owned banks are weakly capitalized and losing market share to private sector banks.

Source: Mint August 13, 2017 21:45 UTC