Rating agency Crisil in a recent report said bank credit growth
is likely to nosedive to a multi-decadal low of 0-1 per cent in 2020-21 as economic activity is sharply impacted by the Covid-19 pandemic.
For May, the non-food credit growth decelerated to 6.8 per cent year-on-year from 11.4 per cent in the corresponding period of the previous year, RBI data had shown.
The outstanding incremental non-food credit stood at Rs 90.3 trillion as of May 22, 2020, against Rs 84.51 trillion on May 24, 2019.
Bank loan growth to industry decelerated to 1.7 per cent in May from 6.4 per cent in the corresponding month last year.
Loan growth to the services sector slowed down to 11.2 per cent in May, compared with 14.8 per cent a year ago.
Personal loans growth decelerated to 10.6 per cent in May 2020, against 16.9 per cent in May 2019, RBI data showed.