Reflecting the deepening economic crisis arising from both structural and cyclical issues and a massive fall in consumption demand, bank credit growth rate, for the first time this fiscal, slowed to single digit at 8.8 percent to Rs 97.71 lakh crore during the fortnight to September 27, according the Reserve Bank of India data.
In the first fortnight of the fiscal ending April 12, the credit demand grew 14.19 percent after closing the previous fiscal at 13.24 percent.
Throughout this fiscal so far, credit growth has been in the low-double-digit.
On Thursday, global rating agency Moody's slashed its GDP growth forecast to 5.8 percent from 6.2 percent earlier.
The downward revision came in after the first quarter GDP printed at a six-year low of 5 percent forcing a "surprised" RBI to massively slash its forecast by a full 80 bps to 6.1 percent within a span of just two months and by 140 bps from its April forecast.
Since the Q1 GDP, there has not been any positive data coming out, barring inflation, which remains tamed. Be it IIP numbers or exports or core sector data, everything has been heading south month after month.
