LATEST NEWS – Demonetisation has pushed the banks’ credit growth to historic lows and the rate cuts by banks may result in a rebound at least in the housing sector, a State Bank of India (SBI) report said on Thursday.
“The low credit growth is a matter of concern, as the fortnightly data of all scheduled commercial banks indicates that credit offtake year-on-year declined to a historical low of 5.1 per cent as on December 23,” according to the SBI report titled ‘Econwrap – Betting on credit growth’.
“During the period between November 11 and December 23, credit offtake has declined by Rs 5,229 crore, while banks’ deposits grew by around Rs 4 lakh crore,” the report stated.
With rate cuts now being 90 bps at one go, clearly the evidence is strong for a credit growth rebound at least in the housing sector, it added. READ MORE