PLI scheme, ECLGS extension to boost credit growth: Report

New Delhi, July 12 (KNN) The push by government on public expenditure in FY23 will assist credit growth owing to the normalisation of economic activities, as per a report.

After a modest credit growth in recent years, the Care Edge report said, "the outlook for bank credit offtake is positive due to the economic expansion tracking nominal GDP growth, rise in government and private capital expenditure, rising commodity prices, implementation of the PLI scheme, the extension of ECLGS for MSME and retail credit push.”

According to the rating agency although the gross non-performing assets (GNPA) ratio hit a six-year low of 5.9 per cent in FY22 but it remained above the pre-asset quality review of 2015-16.

Despite gradual decline India's NPA ratio is one of the highest among the comparable countries. 

Non-performing loans eased in advanced economies due to continued deleveraging, and institutional and government intervention, it said.

Apart from retail, the major driver of this growth has been the wholesale credit, which reported double-digit growth after witnessing a significant slowdown last year, it said.  (KNN Bureau)