Higher lending for long-term investments in India would obviously nudge growth upwards. At end-March 2010 and 2011 growth in lending for public sector banks (PSBs) was booming at 19.9 and 21.5 per cent (year-on-year) and for private banks the comparable numbers were 12.9 and 23.9.
By March 2017 credit growth for PSBs was down to 1.5 and has recovered somewhat to about 5 per cent by March 2018. For private banks, the same numbers for 2017 and 2018 were 17.3 and 22 per cent (Source: RBI Financial Stability Report released on June 26, 2018). However, the outstanding stock of private bank ...
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