Coronavirus outbreak: Bank credit growth falls sharply to 6.1% in FY20

Facing the twin issues of an economic slowdown and the Covid-driven lockdown, the pace of bank credit growth fell sharply to 6.1 per cent in FY20, from13.3 per cent in FY19.
 

Deposit accretion activity also moderated in FY20 to 7.9 per cent from 10 per cent in FY19, according to Reserve Bank of India (RBI) data. While banks faced the slowdown impact throughout the year, the Covid blow came in the final month of the financial year.
 

The effect of the latter is expected to reverberate and perhaps become more pronounced in FY21. Scheduled commercial banks in India dispensed Rs