The report flags sluggish household deposit accretion and muted growth in low-cost deposits as the key structural challenges for banks in the current cycle. While deposits have broadly grown in double digits, momentum has failed to keep pace with credit growth.
This transfer, coupled with the subsequent government spending, will bolster the central government's fiscal position, enabling potential additional spending or fiscal consolidation.
New Delhi [India], Dec 30 (ANI): Muted economic growth, lower working capital requirements and risk aversion among lenders have compressed the incremental credit growth in current financial year (April 2019 to March 2020), according to investment information agency ICRA.