Fiscal deficit causes bank credit growth to fall

BusinessFiscal deficit causes bank credit growth to fall

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Mumbai. Reflecting the deep economic crisis arising from both structural and cyclical issues and a sharp decline in consumption demand, the bank credit growth rate, for the first time in this financial year, fell by 8.8 per cent to 97.71 lakh during the fortnight from 27 September. Crores came to Rs.

Loan demand grew 14.19 percent in the first fortnight of the financial year ended April 12, after a 13.24 percent increase in the previous financial year. Throughout this fiscal, credit growth has been in the low-double digits. On Thursday, global rating agency Moody’s estimated its GDP growth at 5.8 percent, up from 6.2 percent previously.

GDP appeared at a six-year low of 5 percent in the first quarter after a downward revision, causing the “surprise” RBI to scale its forecast entirely from 80bps to 6.1 percent within just two months and 140bps. Reduced to. From its April forecast. Since Q1 GDP, there has been no positive data showing curbing inflation, which still remains. Whether it is IIP number or export or core sector data, everything is moving south month after month.

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