New Delhi - The government has 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% in April 2018, up from 5.9% in October 2017; supporting GDP growth in March 2018 at 7.7%," 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% 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%.