Banks favor sovereign bonds to give loans during this lockdown: Weak credit demand, sufficient stores, and the capacity to single out borrowers have overflowed Indian loan specialists with liquidity during the lockdown, inciting them to expand possessions of government bonds. Such bond possessions, estimated by the statutory liquidity ratio (SLR), have developed by 259 premise focuses (bps) between 27 March and 5 June to 27.97%, indicated information from the Reserve Bank of India (RBI). A bank's SLR is communicated as its investments in focal, state government, and other affirmed protections as a level of its net demand and time liabilities (NDTL). The RBI orders a base SLR holding of 18%. Specialists said a blend of surplus liquidity, hazard avoidance, and the allure of government protections has prompted banks to put more in SLR bonds. "These are protected investments and giving generally better returns. This pattern will proceed as long as the demand for bank credit is low and banks are singling out their clients," said Madan Sabnavis, boss economist, Care Ratings. Information from the RBI demonstrated that non-food credit has contracted on a year-to-date premise between 27 March and 5 June by ₹1.51 trillion to ₹101.69 trillion. Be that as it may, year-on-year, non-food credit has become 6.2%, the information appeared. "Banks are prepared to loan just to first-class borrowers and that is occurring in the bond market too. People are putting resources into public sector bonds and in those of profoundly appraised privately owned businesses," said Sabnavis. Bankers hope to see a get in credit in the last piece of the year. Arijit Basu, overseeing chief, State Bank of India, said at Mint's Pivot or Perish online class that he anticipates that loans should develop from the December quarter of FY21. "Most definitely, the bank is attempting its best. As of now, from the second 50% of May, retail demand is gradually returning, home loans and personal loans are seeing an uptick," he said.