Bank credit growth slumps to 5-decade low of 6.14% in FY20 over low demand

Bank credit growth decelerated to an over five-decade low of 6.14 per cent in the fiscal ended March 31, 2020, amid a faltering economy, lower demand and risk aversion among banks, RBI data showed.

Bank advances growth in FY20 was the slowest since the fiscal ended March 1962, when loans had grown by 5.38 per cent.

In the week ended March 27, 2020, advances stood at Rs 103.71 lakh crore as against Rs 97.71 lakh crore as on March 29, 2019, according to Reserve Bank data.

"The economy during the year was weak which led to demand slowdown. Also, there was higher risk