Bank Q1 credit growth at 9.5%, likely to pick up

RBI data reveals banking credit grew 9.5% and deposits 10.1% in the June quarter year-on-year. Despite a slowdown in fiscal 2025, analysts anticipate a credit growth recovery to 12-13% in FY26, fueled by cheaper loans and repo rate cuts. Easier liquidity may boost consumption and retail inflation with a lag, according to ICICI Bank.

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