New Delhi, June 12: The government on Tuesday said the recapitalisation of banks and resolution of non-performing assets (NPA) had started showing results which was reflected in the double-digit growth in bank credit in April. Financial Services Secretary Rajiv Kumar said the NPA resolution through the National Company Law Tribunal (NCLT) was also helping banks.
“Bank recapitalisation in October 2017 (is) showing results. Bank credit (grew at) 10.4 per cent in April 2018, up from 5.9 per cent in October 2017; supporting GDP growth in March 2018 at 7.7 per cent,” he said in a tweet.
“NPA resolution through NCLT and write back (is also) helping banks,” he added. The Banking Secretary was apparently referring to the Rs 2.11 lakh-crore recapitalisation package announced last year by the government for public sector banks. According to the Reserve Bank of India’s data released on Monday, gross bank credit grew at 10.4 per cent in April, the highest since demonetisation and the implementation of Goods and Services Tax.
India’s GDP for the fourth quarter of 2017-18 grew at 7.7 per cent. (IANS)