Attention is turning to India's post-pandemic potential growth, which could fall to a two-decade low
According to Reserve Bank of India (RBI) data, gross bank credit was down to Rs 91.08 trillion in May, from Rs 92.63 trillion in March.
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Much of the money that households and businesses receive in the form of stimulus checks will probably sit idle in their bank accounts
In the fortnight ended May 24, 2019, bank loans had stood at Rs 96.21 trillion and deposits at Rs 124.99 trillion, the RBI data showed
Loans sanctioned by public sector banks (PSBs) at the end of May 8 stood at Rs 5.95 trillion
Credit costs could touch Rs 2.7 trillion
In the year-ago fortnight, bank loans had stood at Rs 96.20 trillion and deposits at Rs 124.83 trillion
A majority of street vendors, due to closure of their business, do not have the liquidity to pay back a loan.
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Given the scale of demand contraction, we need a fiscal package of at least 3-4 per cent of GDP
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These investors are yet to approve the moratorium on underlying loans and reschedule most PTC repayments
Bank advances growth in FY20 was the slowest since the fiscal ended March 1962, when loans had grown by 5.38 per cent
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The loans can be repayable in 6 monthly installments after a moratorium period i.e, 6 months from the date of disbursement
Growth in advances to the services sector decelerated to 8.9% from 23.9% in January 2019
Growth in advances to the services sector decelerated to 8.9 per cent from 23.9 per cent in January 2019
Non-food bank credit growth decelerated to 7 per cent in December 2019 from 12.8 per cent in December 2018
Bankers said that with private investment practically coming to a halt, there was little demand for corporate credit.