For First Time In FY20, Credit Growth In Single Digit 

target2020
By target2020 October 12, 2019 10:44

Reflecting the deepening economic crisis arising from both structural and cyclical issues and a massive fall in consumption demand, bank credit growth rate, for the first time this fiscal, slowed to single-digit at 8.8 percent to Rs 97.71 trillion during the fortnight to September 27, according the Reserve Bank of India data.

  • Throughout this fiscal so far, credit growth has been in the low-double-digit.

Moody’s downgrade

  • Global rating agency Moody’s has slashed its GDP growth forecast to 5.8 percent from 6.2 percent earlier for India.
  • The downward revision came in after the first quarter GDP printed at a six-year low of 5 percent forcing RBI to slash its forecast by a full 80 bps to1 percent.
  • Since the Q1 GDP, there has not been any positive data coming out, barring inflation, which remains tame.
  • Be it IIP numbers or exports or core sector data, everything has been heading south month after month.
  • Tax collections, both direct and direct, have also been going down.
  • The GST collection has never touched the desired

Rs 1-lakh-crore-mark barring in April.

  • The government has given away as much as Rs 1.45 lakh crore to the corporates by way of a massive reduction in corporate tax rates with retrospective effect from April 1.
  • But it puts a big question mark on the government’s ability to meet the fiscal deficit targets of 3.3 percent.
  • IMF earlier this week opined that India is experiencing a “more pronounced” effect of the global downturn.

For First Time In FY20, Credit Growth In Single Digit 

For First Time In FY20, Credit Growth In Single Digit 

For First Time In FY20, Credit Growth In Single Digit 

Also read: NPAs Down, Credit Growth Picking Up: RBI

‘Crisis in the NBFC sector could hurt economic growth’

target2020
By target2020 October 12, 2019 10:44