Context:
For the fifth month, Indian banks reported a drop in their loan growth in November due to continued “crackdown” by the Reserve Bank of India (RBI) on “exuberant” lending activities.
Bank Loan Growth
Bank loan growth is the change in the total amount of credit that banks provide to the economy over a year. It includes loans for food, non-food, cash, and overdrafts
- Loan growth and bank performance
- Loan growth is a key indicator of a company’s performance. Above-average loan growth mean that a bank is pricing money cheaply and loosening credit standards.
