2021
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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66%
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42%
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56%
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73%
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Detailed explanation-1: -The country’s credit-to-GDP ratio improved to 56.075% in 2020 from a low of 52.7% in 2019. In 2018, it was still lower at 52.4%, marginally better at 53.6% in 2017, and a higher 59% in 2016 and the five-year best of 64.8% in 2015.
Detailed explanation-2: -The share of non-banking credit by NBFCs, HFCs and others have grown in the recent period. The share of HH borrowings from all these institutions (SCBs, NBFCs, HFCs and Co-operatives banks) increased to 35.4 per cent of GDP in March 2020 from 32.9 per cent of GDP in March 2019.
Detailed explanation-3: -Contribution of the banking sector to GDP is about 7.7% of GDP. Banking sector intermediation as measured by total loan as a % of GDP is 30%.
Detailed explanation-4: -The incremental credit to GDP share was as high as 63 per cent in the pre-pandemic year (FY19). The average share was 50 per cent for the seven-year period ended FY20.
Detailed explanation-5: -As per the latest data from Bank for International Settlements (BIS), incremental credit growth has decreased to 59-year low at 5.56% in Financial Year 2021.