Credit growth of private and non-PCA banks surges, says RBI report

The report also suggested gross non-performing assets (GNPAs) of the PSBs may have peaked in March 2018

Despite concerns, credit growth of the scheduled commercial banks (SCBs) improved across all bank groups between March and September 2018, according to the Reserve Bank of India’s (RBI’s) latest Financial Stability Report. 

As seen in chart 1, credit extended by all SCBs grew 13.1 per cent at the end of September 2018, while that by private sector banks (PSBs) grew at a robust 22.5 per cent. While the aggregate credit extended by all PSBs grew a mere 9.1 per cent — as 11 of them were placed under the RBI’s prompt corrective action (PCA) framework that restricts credit flow —