Easing of restriction not enough to boost India loans

A pedestrian wearing a protective mask walks past an Axis Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. India's central bank Governor Shaktikanta Das and the chief executive officers of the nation's banks have discussed ways to ensure credit flow to businesses once the world's toughest stay-at-home order ends

NEW DELHI: India’s easing of stringent lockdown rules after 40 days will do little to revive credit growth in the economy, according to research from Axis Bank Ltd.

Bank loans and deposits are concentrated in areas designated red zones, where the movement of people and economic activity will remain restricted, Saugata Bhattacharya, the lender’s chief economist in Mumbai, wrote in a note.