BackNon-food credit growth lowest in three years
Growth in non-food credit during this fiscal stands at `94,450 crore
Premium(Hindustan Times)
It is well known that credit growth is slowing. Indeed, the growth in non-food credit during this fiscal at ₹ 94,450 crore is lower than the comparable number of a year ago. Bank credit growth to industry is flat as no new projects are taking off.
As the chart shows, the growth in non-food credit is the lowest in three years barring 2009-10, when it grew only 1.1%. One reason, perhaps, for the low growth is that banks’ investments are increasing. Accommodation provided by banks in terms of subscribing to the corporate sector’s debt instrument is increasing. That number stands at ₹ 20,790 crore, over one-fifth of the growth in non-food credit this fiscal. With no rate cuts likely in the near term, many corporates will continue to use this method to raise funds and circumvent the higher base rates of banks.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
