The U.S. Treasury Department said on Monday average lending from about 500 banks that have received government capital injections fell 0.8 percent in March compared to February.

In the first monthly lending report from its Capital Purchase Program, the Treasury said average loans outstanding from CPP recipient banks fell to $5.237 billion in March from $5.279 billion in February. The CPP is part of the government's $700 billion Troubled Asset Relief Program.

(Reporting by David Lawder; Editing by James Dalgleish)