New Delhi
Heightened risk aversion pulled the overall credit growth rate of scheduled commercial banks to 5.9 per cent on a year-on-year (y-o-y) in March 2020, the RBI Financial Stability Report (FSR) said. Accordingly, the overall credit growth declined to 5.9 per cent in March 2020 from 13.2 per cent in March 2019. “Bank credit, which had considerably weakened during the first half of 2019-20, slid down further in the subsequent period with the moderation becoming broad-based across bank groups,” the report said. According to the report, in terms of wholesale credit the outstanding at the end of March 2020 of public sector banks (PSBs) accounted for 62 per cent while that of private sector banks (PVBs) provided close to 29 per cent. The report cited that among the PSBs, there was a sharp credit contraction across all rating categories except and above’ as also among non-PSU obligors.—Agencies
