The amount of incremental financial credit available to the commercial sector of an economy is an indication of its health. This year, the incremental bank credit has only been to the tune of Rs 80,000 crore for the period, April 1 to December 6. For the period, April to September 2019, the financial credit to the commercial sector actually shrank by Rs 52,971 crore. ICRA, a credit rating agency, has predicted an overall decline of 40-45 per cent in the incremental bank credit for the whole of FY20. Bank credit had experienced steady growth in the past two years mainly due to new infrastructure projects and real estate growth.

Source: The Telegraph December 31, 2019 19:18 UTC