Slowdown effect on the credit growth of lenders: Explained in seven charts

On the profitability front, public sector banks profitability ratios were muted because of weak credit growth as well as slow resolution of bad assets.

The slowdown in the Indian economy has cast a pale shadow on the credit growth of the lenders. The Financial Stability Report (FSR), released by the Reserve Bank of India (RBI), says credit growth moderated to 8.7 per cent on a year-on-year (y-o-y) basis in September 2019 from 13.2 per cent in March 2019. In the same period, however, deposit growth improved to 10.2 per cent from 9.9 per cent, thereby exceeding the credit growth. This is for the first time since Q2 of FY17 that the credit growth has fallen below the deposit growth.
 
On the profitability front,