MUMBAI, March 5 -- Contraction of credit to large industries and infrastructure remains a cause of concern, the Reserve Bank of India (RBI) said.
However, credit growth to medium industries has accelerated, pointing to the positive impact of measures taken by the government and RBI, the bank said in its monthly bulletin.
"The muted credit offtake in the recent past needs to be seen in the context of economic slowdown coupled with the covid-19- induced lockdown," it said.
Bank credit growth, which had already started decelerating in 2019-20, experienced a further setback in 2020-21 in the wake of the pandemic. However, with the gradual resumption of economic activity, credit to agriculture and services has registered accelerated growth re...