Bank loans to industries grew just 1.7% as of May 22, overall credit growth at 6.8%- Mo...

This report covers key India-focused updates related to loans, EMI, interest rates and banking. Bank loans to industries grew just 1.7% as of May 22, overall credit growth at 6.8% A slowing economy and impact of COVID-19 outbreak have severely affected bank credit growth. On a year-on year, basis the non-food credit growth slowed to just 6.8 percent as of May 22, 2020, compared to 11.4 percent in the previous year. So far in this fiscal year, growth has actually contracted by 2 percent. Demand for retail and corporate loans was hit hard after COVID-19 outbreak forced the government to announce a nationwide lockdown in the last week of March. But credit growth had taken a severe hit even before that, in line with the slowdown in economic growth in Asia's third largest economy. Credit to industries slowed to just 1.7 percent on a y-o-y basis as on May 22 as against 6.4 percent in the 12 months before that. In this fiscal so far, bank credit to industries contracted by 1.5 percent.