Bank credit is seen growing by 400-500 bps to 9-10% in FY22: Report

Bank credit is seen growing by 400-500 basis points (bps) to 9-10 per cent in the next fiscal year (FY22), on the back of budgetary stimulants and measures announced by the Reserve Bank of India. 

According to CRISIL Ratings, this expected uptick in credit growth is despite the sharpest contraction in the economy since Independence.

In absolute terms, net credit was up Rs 2.3 trillion in the first nine months of the current fiscal year. Interestingly, disbursements under the Emergency Credit Line Guarantee Scheme in this period amounted to Rs 1.6 trillion.

Additionally, Rs 1.4 trillion was deployed by