In addition to easing of risk weights and provisioning norms for standard assets, RBI’s prudential framework governing restructuring of advances (corporate workouts) was also temporarily modified to facilitate restructuring of greater number of units which had potential viability but had been affected in a most unexpected manner.
However, despite the easing of monetary policy and aggressive relaxation in prudential measures in a countercyclical fashion, the credit growth slowed down substantially due to, among other reasons, subdued credit demand and risk aversion among banks as is clear from Table 3.