Credit grows to early-pandemic levels: CARE Ratings
The bank credit growth has increased and returned to the levels observed in the early months of the pandemic (the bank credit growth ranged between 6.5% to 7.2% during April 2020). The bank credit growth rose as compared with the previous fortnight ended 29 January 2021, which can be ascribed to an increase in retail loans further led by falling weighted average lending rates (8.2% in January 2021 v/s 9.5% in January 2020). Moreover, on y-o--y basis, the credit growth remained marginally higher in comparison to the same period last year (6.4% growth during the fortnight ended 14 February 2020). However, slower to declining growth in large industries, the housing sector and NBFCs which accounts for around 27.0%, 14.0% and 7.0% respectively, of the gross bank credit restricted the increase in bank credit growth during the period under review.