Outstanding credit of all scheduled banks witnesses drop in April, 2021

According to the data released by RBI, outstanding credit of all scheduled banks collectively declined by a lesser quantum in the reporting fortnight ended April 23, 2021 as compared to the corresponding fortnight year ago.

The outstanding credit of all scheduled banks declined by Rs. 30,208 crore in the reporting fortnight against a Rs. 72,085 crore fall in the year go fortnight.

“Ecowrap”, the economic research report of SBI observed that the credit decline in April reduced in the last two years.

The report said, “It is well known that both deposits and credit of all the banks always decline in April, as banks mobilise/ disburse more in the last fortnight of the financial year to meet the year end targets… It seems the demand for credit has increased much more due to pandemic.”