The banks' credit to NBFCs increased by Rs 5,000 crore in April 2020, while bank credit growth to service sectors saw a rise too, even as most of economic activity remained suspended due to coronavirus lockdown. Global rating agency Moody's downgraded India's foreign currency and local currency long-term issuer ratings to Baa3 from Baa2. Softbank-backed hospitality chain OYO has allotted employee stock ownership plans (ESOPs) worth Rs 130 crore to all its furloughed employees impacted by the coronavirus pandemic. Read for more top stories from the world of business and economy:

Among services, there has been an increase in credit to transport operators by Rs 4,300 crore, and retail traders Rs 6,900 crore in April.

The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period of relatively low growth, the agency said.

On April 8, OYO founder and Group CEO Ritesh Agarwal had said that the company will place a certain number of employees on furloughs.

The government also gave a nod to Rs 20,000 crore subordinated debt for stressed MSMEs, benefiting two lakh stressed small businesses.

With over 190,000 confirmed cases as on May 31, India has the world's 7th highest number of recorded coronavirus infections. However, more than 48 per cent infected people have recovered fully with death rate of less than 3 per cent among confirmed COVID-19 cases.