Question : Restricted Credit Growth

(a) whether the high Non-Performing Assets may restrict credit growth to 8 per cent in Financial Year 2018-19;
(b) if so, the details thereof;
(c) whether external commercial borrowings will go upto US$27-32 billion on the back of relaxed norms announced by the Reserve Bank of India (RBI) and the high rate of borrowing domestically, if so, the details thereof;
(d) whether the country’s banking system is supposed to have ended Financial Year 2018 with a credit growth of nearly 11 per cent; and
(e) if so, the details thereof?

Minister of State in the Ministry of Finance

(a) to (e): Credit growth of Scheduled Commercial Banks (SCBs) has increased from 3.91% in the financial year (FY)2016-17 to 8.82% in FY2017-18 (provisional), while the Non-Performing Assets of SCBs banks have increased from 9.31% in FY2016-17 to 11.21% in FY2017-18 (provisional) as per the global operations data of RBI.
In respect of the quantum of external commercial borrowings (ECBs), RBI has apprised, inter alia, that ECB agreements registered with RBI during the first quarter of FY 2018-19 stood at US$ 7.97 billion, as against US$ 4.3 billion in the first quarter of FY 2017-18, and that the ECB figure for FY 2017-18 was US$ 28.8 billion.
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