‘Credit growth slowed to 59-year low of 5.56%’
The Hindu
Pace slowest since FY’62: SBI Research
Despite the government’s credit-driven stimulus to help tide over the impact of COVID-19, bank credit growth hit a new low for the second year in a row in FY21 at 5.56% — the lowest in 59 years, according to an analysis by SBI Research. Credit offtake in FY21 at ₹109.51 lakh crore was lower than FY20’s when it had clocked a growth of 6.14% — which was the slowest in as many as 58 years. It was way back in FY1962 when credit growth was slower than this at 5.38%. Only about ₹3 lakh crore of the ₹20 lakh crore stimulus amounting to 11% of the GDP was actually used in fiscal stimulus to fight the impact of COVID-19 as the remaining amount was through credit support with no impact on the fiscal numbers of the government.More Related News