The Economic Survey Volume 2 makes an interesting point about corporate credit growth. The private sector banks saw credit growth averaging out at around 10-11 per cent in 2016-17. This was low by historical standards and it was pulled up by a sharp credit expansion in March 2017. Private sector banks controls about 28 per cent of outstanding assets in the banking system.
Public sector banks, which control 72 per cent of assets, had credit disbursal dropping into negative territory. This is unheard of. The credit growth rate of public-sector banks was consistently negative through the last fiscal. Overall credit growth
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