Bank credit to rise 9-10% in FY22 on budget support, RBI measures: Crisil

Despite bank credit contracting by 0.8 per cent in the first half of the current fiscal (H1FY21), the rating agency expects it to rise by 4-5 per cent at the end of the current fiscal (FY21)

Bank credit is expected to grow 9-10 per cent in FY22 as the economy recovers gradually from the slowdown, backed by budgetary support and growth-boosting measures of the central bank, said rating agency Crisil in its report.
 

Despite bank credit contracting by 0.8 per cent in the first half of the current fiscal (H1FY21) because of the slowdown in the economy due to the raging virus, the rating agency expects it to rise by 4-5 per cent at the end of the current fiscal (FY21), which is a departure from the earlier estimate it had given in June 2020, where