Why credit growth hit a 59-yr low in FY21? AAA-rated papers were 46 bps cheaper than bank rates

According to analysis of the corporate bond yields, bank's MCLRs and GSecs between January 2020 and March 2021 by Care Ratings, AAA-rated companies could sell their debt at a cheaper rate than bank loans to the extent of 46 bps, and AA+ papers by 33 bps over the MCLR or the marginal cost of funds-based lending rate and below which a bank cannot lend. When compared to the Gsecs, AAA and AA+ papers could command only 100 bps over the benchmark gilts.

source https://economictimes.indiatimes.com/industry/banking/finance/banking/why-credit-growth-hit-a-59-yr-low-in-fy21-aaa-rated-papers-were-46-bps-cheaper-than-bank-rates/articleshow/83088137.cms