Bank credit's double-digit growth in April brings cheer, with caution

Farm loan waivers, non-performing loans in the affordable housing segment, and the Nirav Modi scam are the reasons for slow credit growth, experts said

Gross bank credit (non-food) grew 10.7 per cent in April 2018, registering the third double-digit growth since December 2014. Financial Services Secretary Rajeev Kumar attributed this success to the bank recapitalistion exercise undertaken last year. However, the cheer has arrived with some caution, said experts.

Agriculture, the biggest informal employer in India, housing sector, which has an impact on sectors that energise the economy, and the growth-boosting exports sector are witnessing the slowest bank credit growth, data released by the Reserve Bank of India suggests.

Farm loan waivers, non-performing loans in the affordable housing segment, and the Nirav Modi scam