Banks have lent more to sectors that have emerged as the most vulnerable to the lockdown imposed for curbing covid-19 spread, shows data from the Reserve Bank of India (RBI).
As of February, loans to commercial real estate grew by 15.13% year-on-year while those to tourism, hotels and restaurants grew by 16.95%.
As the adjoining chart shows, credit growth rates were low a year ago for these two services. The lockdown has shuttered restaurants, hotels and tourism to enforce social distancing.
With malls, multiplexes and non-essential stores closed, commercial real estate has taken a massive hit. Add the fact that work from home has been adopted, offices too have been largely closed.