Credit growth, NPA reduction to depend on pace of economic revival: RBI

Credit to the commercial sector shrank by Rs 52,971 crore during April-September this calendar, or in the first half of 2019-20, from an expansion of Rs 3.66 trillion in the same period a year ago

Indian banks are getting a better grip on their bad debt situation and non-banking financial companies (NBFC) are expected to regain their niche after a turbulent one year, but further reduction in bad debts and credit growth depend upon how fast the economy recovers from the slowdown, the Reserve Bank of India (RBI) said on Tuesday.
 
In this slowdown, banks and non-banks are shrinking their credit to the commercial sector, while uncertain times could increase the spectre of default in retail loans as well, the RBI’s Report on Trend and Progress of Banking for 2018-19 warned.
 
Credit to