The economic revival has mostly been financed through money raised through the capital markets rather than bank credit, the Economic Survey for 2021-22 pointed out.
“Risk capital (i.e. money raised from capital markets) has so far been more important than the banks in providing finance to the revival,” it stated.
Non-food bank credit has remained under pressure for most of the pandemic period is slowly picking up pace.
It stood at 9.3 per cent as on December 31, 2021, as against 6.6 per cent a year ago. This growth was driven by personal loans and agriculture sector.
The RBI has reduced repo rate by 250 basis points since February 2019. The survey said that the transmission has been higher in public sector banks than in private sector banks in the current monetary easing cycle.
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