New Delhi, July 20: Bank credit growth in India is expected to remain strong despite concerns over the gap between credit expansion and deposit growth, according to a report by SBI Research.
The report highlighted that lending activity is likely to maintain momentum, supported by economic growth, improving demand across sectors, and continued financial system stability. However, the difference between loan growth and deposit mobilisation remains a key area of focus for banks.
Experts noted that strengthening deposit flows will be important to ensure sustainable credit expansion and maintain adequate liquidity within the banking system.
The banking sector continues to play a crucial role in supporting economic activity by providing credit to businesses, individuals, and various sectors of the economy.
SBI Research said ongoing trends in deposits, lending demand, and overall economic conditions will determine the future pace of credit growth in the banking sector.
