Interestingly, according to the report, the sectors, which saw a sharp surge in bank lending, were those which were expected to be hurt the most by a higher cost of borrowing — industry and infrastructure. Bank lending to industry in the last fiscal grew by a whopping 52 per cent while that for infrastructure grew 42 per cent over the previous year.
The report also suggested relaxing the restrictions, which were put on external borrowings by the corporate sector last year owing to high money supply in the economy. "It may be time to review the temporary restraints placed last year," it said.
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