Public sector banks gained significant lending headroom after liquidity requirement relaxation. This allows them to sustain credit growth while deposit mobilisation remains relatively weak. Excess investment buffers could support incremental loan growth on their substantial loan books. Banks can now free up funds tied up in government bonds for lending. This improvement is visible at some of the largest state-owned lenders.
Read more at the source
Disclaimer: The content of this post is sourced from external sites and is for informational purposes only. All rights and credits belong to the original authors and publishers.
