First time in FY20, credit growth enters single-digit lane as slump spreads

Reflecting the deepening economic crisis arising from both structural and cyclical issues and a massive fall in consumption demand, bank credit growth rate, for the first time this fiscal, slowed to single digit at 8.8 percent to Rs 97.71 trillion during the fortnight to September 27, according the Reserve Bank of India data.

In the first fortnight of the fiscal ending April 12, the credit demand grew 14.19 percent after closing the previous fiscal at 13.24 percent.

Throughout this fiscal so far, credit growth has been in the low-double-digit.

On Thursday, global rating agency Moody's slashed its GDP growth forecast