In the Indian economy, the growth of loans disbursed by banks in the financial year 2019-20 came down to 6.14 percent. This is the lowest level in five decades in terms of growth in loan disbursement. Loan growth has come down amid sluggishness in the economy, lack of demand and risk aversion by banks. It has been said in the data released by the Reserve Bank of India (RBI). Earlier, in March 1962, the growth rate of loans given by banks was 5.38 percent. According to the data released by RBI, the loans given by banks in the week ended 27 March 2020 stood at 103.71 lakh crore figures. Earlier, in the week ended March 29, 2019, the figure was Rs 97.71 lakh crore.
Regarding the growth rate, Fitch Ratings Director (Financial Institution) Shashwat Guha said, "The economy remained weak throughout the year, resulting in a drop in demand." During this time banks also took a very cautious approach. The pace of economic growth of the country stood at 4.7 percent in the October-December, 2019 quarter, which is a seven-year low. The country's GDP growth was 5.1 percent in the second quarter of the last financial year and 5.6 percent in the first quarter.
In his statement, Guha further said that now the results of the June quarter will be watched. This will see the impact of Kovid-19 on the entire economy. The RBI has said in its recent monetary policy report that the growth rate of loan disbursement is likely to be moderate, due to the risk aversion by banks due to demand crunch and the turmoil caused by the coronavirus epidemic.
Also Read:
Indian government can make big changes in trade with China
PM-Kisan: 7.92 crore farmers got big relief, first installment credited in bank accounts
RBI former governor Raghuram Rajan says, 'I am ready to help India in economic crisis'
EPFO settled 1.37 lakh of clearance claims within 10 days amid corona