Bad loans effect?

An employee poses with the bundles of Indian rupee notes inside a bank in Agartala, the capital of India's northeastern state of Tripura August 22, 2013. The Indian rupee fell past 65 to the dollar to a record low on Thursday, after Federal Reserve minutes hinted that the U.S. was on course to begin tapering stimulus as early as next month and as foreign investors become sellers of Indian stocks. REUTERS/Jayanta Dey (INDIA - Tags: BUSINESS)

For the first time, YoY increase in lending by private sector banks in value terms exceeded that of the public sector.

The non-performing assets as a proportion of advances has increased to around 5% for public sector banks while for private banks it has remained relatively lower, compared to the scenario a year ago. This could be one of the reasons why private banks have painted a brighter picture of their year-on-year credit increase than their public counterparts.

In the sector-wise breakup of credit/loans, the major chunk of lending for private sector banks is marked to personal loans whereas for public sector banks, it's marked to manufacturing and processing.

Source: RBI, CMIE

Compiled by: TCA Sharad Raghavan, Srinivasan Ramani

Corrections and clarrification: The article has been edited for an error.