There has been some pick up in credit growth in recent months" said RBI governor Urjit Patel in his monetary policy statement on Wednesday. " Recapitalisation of public sector banks may help improve credit flows further""Latest data on bank credit and adjusted bank credit and total financial resources flow suggest that we are in the uptick on credit growth," Patel said addressing media after the monetary policy announcement. As economy picks up, demand for credit should go up and there is enough supply to ensure that lack of credit is not in the way of supporting higher growth. "Bankers expect a pick in loan demand during the second half of the fiscal for a variety of reasons. This could also added to the loan demand during rest of the fiscal year.

Source: Economic Times December 07, 2017 12:45 UTC