In the December quarter, slower consumer demand and risk aversion to unsecured loans have led banks to report slower credit growth compared to deposit growth. HDFC Bank’s deposits surged 15% year-on-year while its loan growth was at 3%. Only IDBI Bank and IndusInd Bank saw loan growth outpace deposits.
Market expects one more rate cut as inflation stays benign
Indian economists and bond market experts expect another quarter percentage point cut in policy rates. This follows the Reserve Bank of India’s recent rate reduction