Missing Credit

After being on a downward trajectory since March 2020, bank credit growth is showing signs of uptick — it grew 3.2 per cent during April-December FY21, against 2.7 per cent in FY20 — primarily due to strong festive demand. Incremental disbursements (over March) were visible for the first time in November, driven by retail and agriculture credit growth. Going ahead, personal loan segment is likely to be the silver lining, though a lot hinges on overall economic revival as well.

Taking Stock

Non-food credit, which accounts for 99.3 per cent of outstanding bank loans, has been weak due to slowing consumption, hit further