COVID-19 Pandemic and Trends of Bank Credit in India

This paper shows the varied paces of sectoral credit growth during the pre-pandemic, pandemic, and post-pandemic phases. The overall growth of the bank credit remained consistent and further improved in the post-Covid period. However, it still requires broad-based expansion, especially in the industrial sector. The CAGR of the credit growth relating to agriculture and allied activities got a boost during the Covid period. Another significant feature of the pandemic was a spurt in gold loans. From the perspective of ensuring an adequate flow of credit to the sectors having an economic magnifier potential, sectors such as industries, social infrastructure, and exports need to be focussed upon. In the personal loan segment, housing, education, and vehicle are the sectors which have a significant impact on the well-being and quality of life of people, and as such require deepening, alignments, and targeted augmentations to put the economy on a healthy and speedy growth path.