Bank credit shrinks 1.2% in April, gross bank credit falls to Rs 91.53 trn

Loans in the retail segment contracted 2.5 per cent to Rs 24.90 trillion

Bank credit shrank 1.2 per cent across sectors —  agriculture, industry, services, and retail — on a monthly basis in April, which was the first full month of the nationwide lockdown to contain the spread of coronavirus.

According to the Reserve Bank of India data, gross bank credit was down to Rs 91.53 trillion in April, from Rs 92.63 trillion in March. Loans to industry —large, medium, small, and micro units — declined 0.7 per cent to Rs 28.84 trillion in April.

Bankers said usually the first month of a new financial year is a lean period. But this time, demand for