The Covid-19 pandemic took a toll on credit growth of all scheduled banks in FY21. These banks reported slower 5.54 per cent year-on-year (yoy) growth against 6.55 per cent growth in FY20, as per Rese
Bank credit growth at 90% of FY20 level
February 15, 2021
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Bank credit growth in FY21 so far (up to January 29) has reached about 90 per cent of the year-ago level, going by the Reserve Bank of India’s data on Scheduled Banks’ Statement of Position in India.
This is probably an indication that credit demand is limping back to normalcy after the economy was ravaged by the Covid-19 pandemic in the first six months of FY21.
Year-to-date (YTD) credit growth of all scheduled banks at ₹3,39,147 crore was about 90 per cent of the year-ago YTD credit growth of ₹3,74,938 crore.
On a year-on-year basis, credit growth has slowed to 5.92 per cent as of January-end 2021 against 7.41 per cent as of January-end 2020.