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Indian bank credit growth hit a record low in fiscal 2020-21 and is expected to languish near those levels this year as a massive surge of Cvoid-19 infections risks denting India's economic recovery and forces lenders to turn cautious again.
Credit growth touched a record low of 5.6 per cent in financial year 2021, recently released Reserve Bank of India (RBI) data showed, and it slipped even further in April.
"We were estimating credit growth of 8-9 per cent for this financial year, but due to the rise in Covid-19 cases, a higher mortality rate and lockdowns in several parts of the country, downward risks have arisen," said Karthik Srinivasan, analyst at ICRA.