SBI says low credit growth, high GDP suggest decoupling
Monday, April 17, 2017, 6:23 PM
SBI said a steep decline in credit growth, which hit a multi-decadal low in 2016-17 despite the economy clipping at around 7%, suggests decoupling of credit growth and GDP. Loan growth plummeted to a whopping six decadal low of 5.08% in fiscal 2017, against 10.7% a year ago, according to Reserve-Bank data. This was the lowest since 1953-54 when credit demand recorded only 1.7% growth.