• Amid the slowdown in the economy, overall financial flows to the commercial sector have declined sharply, by around 88 per cent, during the first six months of the current financial year.

According to the latest RBI data:

• The flow of funds from banks and non-banks to the commercial sector has been Rs 90,995 crore in 2019-20 so far (April to mid-September).
• It was Rs 7,36,087 crore in the same period last year.
• The commercial sector does not include farming, manufacturing and transportation.
• There was a reverse flow of Rs 1,25,600 crore from the commercial sector to non-deposit-taking NBFCs and deposit-taking NBFCs as against a flow of Rs 41,200 crore in the same period last year.
• Non-food credit flow from banks to the commercial sector also declined.
• Among foreign sources, both external commercial borrowings and foreign direct investment (FDI) registered sharp increases.
• Credit growth to services has decelerated sharply since January 2019.