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India Holds Rates Steady Amid Pandemic Resurgence
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Indian Rupee At More Than 5-week Low Against U S Dollar After RBI Decision
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Bank credit sees uptick, but will it hold amid Covid resurgence ?
Surabhi
Mumbai |
Updated on
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Provisional data by banks for Q4 on loans and advances has shown an improvement compared to earlier quarters
Bank credit has seen an uptick in recent months indicating a recovery in economic activities but the resurgence of Covid-19 cases and limited lockdowns are raising fresh concerns.
Reserve Bank of India data reveal that year-on-year growth in non-food bank credit was 6.5 per cent in February. This is not bad when compared to a growth of 7.3 per cent in February 2020.
But the ongoing lockdowns are set to impact credit growth. CARE Ratings has pegged the potential loss of GVA to the country from the lockdown in Maharashtra for a month at about ₹40,000 crore in real terms.
The core sector index, which measures output of eight infrastructure industries, rose marginally by 0.1 per cent in January, indicating a wobbly recovery from the pandemic shock. Output in five of the eight crucial sectors fell on a year-on-year (YoY) basis, according to data released by the Ministry for Commerce and Industry on Friday. Growth in core sector output in January was lower than the 0.2 per cent expansion seen in December. In fact, the number for December was revised upwards from a 0.3 per cent contraction estimated earlier. This index has a 40.27 per cent weighting in the Index of Industrial Production (IIP) and captures output in eight infrastructure industries coal, electricity, crude oil, natural gas, steel, cement, fertilizers, and refinery products.
New Zealand Holds Official Cash Rate At 0 25%
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