As per the report of the rating agency, ICRA, the bank credit growth rate is likely to float between 5-6% in the current fiscal year (2017).The reason cited includes weak loan demand as the rate of return offered by debt market is better in comparison to banks.Besides, the deposit rate was also projected to drop to 12 percent from the current 14.7 percent this fiscal ending March 2017 due to better cash flow in the system and cut in the deposit rate by the banks.
So, let’s discuss some questions related to this post:
Q1. How much ICRA estimates bank credit growth to remain subdued in year, 2017?
Source- The Hindu