Bank credit shrinks by Rs 89,087 cr in April on second wave impact

The bank credit expanded by 5.7 per cent in 12 months till April 23, 2021, as against 6.8 per cent a year ago

Commercial bank credit in India contracted 0.8 per cent (Rs 89,087 crore) in April, reflecting a lean period at the start of the new financial year (FY22) and the adverse effect of the second wave of Covid-19. The outstanding credit as of April 23, 2021, was Rs 108.60 trillion, according to the Reserve Bank of India data.
 
In April FY21, credit had shrunk 0.9 per cent.
 
In absolute terms, bank credit usually declines in the first month of the new financial year, as it is a lean period, CARE Rating said in a statement. This trend has been