Gross credit offtake may see a 200-300 bps rise in FY21, says CRISIL

Bank loans to corporate houses, excluding bank loans to NBFCs, is expected to remain subdued in FY20

The slowdown in credit offtake that hit the banking sector adversely in the current financial year might be showing signs of bottoming out. 

Rating agency CRISIL estimates that the gross credit offtake may see a 200-300 basis points rise in 2020-21 (FY21), driven by a revival in economic activity, continuous demand for retail credit securitisation. Credit growth for 2019-20 (FY20) is hovering around 6 per cent, the lowest in many years. In 2018-19, growth was 11 per cent and in 2017-18, it was 9 per cent. The agency also expects some growth momentum in the fourth quarter, after three subdued quarters.

The