NEW DELHI : Top 50 corporates in the country have reduced debt by ₹59,600 crore in the first half of this fiscal as part of their strategy to deleverage their balancesheet, according to government sources. This has some bearing on the credit growth of the banks as corporates borrowing from domestic lenders has come down, the sources said. In the last financial year 2018-19, sources said, these companies had reduced their debt burden by about ₹43,000 crore. As per sectoral deployment data for October, non-food bank credit growth was at just 8.3%, with credit growth to industry segment down 3.4 per cent, and retail loans rising to 17.2%. According to Icra Report the year-on-year growth in bank credit is expected to decelerate sharply to 6.5-7 per cent in FY20 from 13.3 per cent in FY19, following limited incremental credit growth in the current fiscal till date.

Source: Mint December 29, 2019 10:41 UTC