Easing of Lockdown Not Enough to Boost India Loans, Axis Says

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. The share of bank credit in districts marked red was 83% of the total as of September 30, and 74% for deposits, he said.