Covid-19 impact: Bank credit growth moderates further to 5.5% by July-end

Bankers said business conditions have been improving, but only incrementally. However, demand remains weak (for credit) and many people are repaying loans, some of of which are under moratorium

Bank credit growth moderated further to 5.5 per cent during the fortnight ended July 31, from 5.8 per cent, in a month which saw an easing of restrictions imposed to contain the Covid-19 pandemic. Credit growth was in double digits (about 12 per cent) during the same period last year.

According to the Reserve Bank of India data, outstanding credit rose by Rs 46,777 crore during the period under consideration to Rs 102.65 trillion (as of  July 31), as against a sharp contraction of about Rs 84,740 crore in the previous fortnight (ended July 17).