Bank credit growth declines to 5% in FY21 as Covid-19 takes a toll

Farm sector stands out with uptick in credit offtake

The pace of bank credit in India moderated to 5 per cent in the fiscal year 2020-21 from 6.8 per cent in FY20 due to the adverse effect of severe economic disruptions caused by the Covid-19 pandemic.
 
The Reserve Bank of India data showed that lending to industry, services, and retail segment moderated in FY21. The agriculture and allied segment was the only bright spot with growth rising to 12.1 per cent in FY21 from 4.1 per cent in FY20. The bank commercial bank credit rose to Rs 97.23 trillion as of March 26, from Rs 92.63 trillion a