India private banks' new loans outpace those of state rivals

New Delhi

INDIA'S privately owned banks are extending new loans faster than their state-run rivals for the first time ever, as government lenders struggle to bring surging bad loans under control.

New credit from private lenders amounted to 3.5 trillion rupees (S$70.9 billion) in the year to March 31, taking their outstanding advances to 17.9 trillion rupees, while state banks' loans grew 2 trillion rupees to 51.2 trillion rupees, according to a Finance Ministry document, a copy of which was reviewed by Bloomberg News. Finance Ministry spokesman DS Malik didn't respond to two calls to his mobile phone on Tuesday seeking comment.