InvestorQ : Did India's bank credit resulted in good growth in five years in FY19?
Sneha Balasubramanian made post

Did India's bank credit resulted in good growth in five years in FY19?

Answer
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1 year ago


Indian economy had many ups and downs in the last few months. Many major factors like changes in manufacturing output, export activity, consumption demand did not grow much as required.
However, among these one major indicator is bank credit. Its growth made a good performance in the whole financial year (FY) 2018-19.
The flow of credit is considered an important element of the economy. Due to tough conditions in the market, many non-bank lenders had to move to bank lending. This led more towards strengthening bank credit system.

India's gross bank credit grew nearly by 12.2 % in the FY19, the sectoral credit data showed. If compared the growth amount stands (approx.) Rs. 9.4 lakh crore in FY19 and Rs. 5.8 lakh crore in FY18. In 5 years, FY19 recorded the highest among all. It recorded over 14% growth.

Industry growth is by 7%, blue-chip companies witnessed growth nearly to 8% in bank lending. Apart from these, retail loan, housing loans, infrastructure, and telecom sector also gave their contribution to strong growth in FY19.


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