The central government's recent decision to recapitalise public sector banks (PSBs) has led to a surge in credit growth, the government said on Saturday.
Finance Minister Arun Jaitley said that credit growth would go further up once the infusion of capital takes place into the baking system.
According to Financial Services Secretary Rajeev Kumar, the banking sector posted double digit growth on a year-on-year basis in December 2017.
"Surge in credit growth: Sustained momentum post-PSB recap decision -- Banking sector posts double digit (10.7 per cent Y-o-Y) growth in Dec'17, up from (7.2 per cent Y-o-Y) in Oct'17, powered by services and retail," Kumar tweeted.
Later in the day, Jaitley said the lending that the banks do is an indication of how growth will move.
"The latest data has shown that credit growth has moved up. And once the infusion of capital takes place into the banking system, credit growth will further go up," he said during 75th anniversary celebrations of the UCO Bank.
--IANS
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