Banking system credit grew 6.5 per cent year-on-year in the fortnight ended May 22, down almost 50 per cent from a year ago, reflecting the impact of the nationwide lockdown imposed at the end of March.
Credit grew at a similar pace — 6.5 per cent — in the previous fortnight, while it expanded 12.7 per cent a year ago (as of May 24, 2019), according to rating agency CARE Ratings.
Senior bankers said severe demand destruction during the lockdown was one of the reasons behind the fall in credit growth. The use of sanctioned credit would see a gradual rise as businesses begin activities during the unlocking phase, they said.
Also, the first quarter of the financial year is usually lean as units and service sector enterprises are engaged in finalising accounts for the year gone by.
Gold price today fell from Rs 46,767 to Rs 46,696 per 10 gram, while silver slipped from Rs 47,930 to Rs 47,800 per kilogram, according to India Bullion and Jewellers Association (IBJA).
The gold jewellery prices vary across India — the second-largest consumer of the metal — due to excise duty, state taxes and making charges.
On MCX, August gold futures fell 0.7 per cent to Rs 46,369 per 10 gram, a day after surging about Rs 700, media reports said on Friday.
According to the website goodreturns.in, the price of 24-carat gold in New Delhi fell to Rs 46,500 from Rs 46,650 per 10 gram. Gold rate in Chennai is Rs 48,830 and Mumbai Rs 46,000.
The price of 22-carat gold in New Delhi is about Rs 45,300 per 10 gram, while in Chennai the price is at