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India’s borrowers managed to get funding despite pandemic hurdles

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₹89,556 crore to the commercial sector between 1 April and 4 December. This was 21.36% higher than the amount lent in the corresponding period of FY20.The share of bank credit in the overall flow of funds increased from 12.2% to 14.4% during the period.

How is this possible?Banks may not be giving loans, but they were willing investors in corporate bonds. In other words, banks have continued to fund companies, but in a different way.This is encouraging and perhaps the reason behind the RBI’s optimistic note on the economy of late.

To its credit, the central bank’s proactive liquidity infusions and accommodative stance seem to have paid off.The flow of funds from other non-bank sources wasn’t hit as badly as feared.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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