Meanwhile, issuance of commercial papers---securities sold by companies to raise funds--dropped sharply to Rs 12.5 trn in FY23 (up to Feb 28) from Rs 19 trn over the same period last year
While credit growth has moderated from 16.5% in mid-January, it is significantly higher than the year-ago period, when it was hovering at around 9 per cent
The Indian banking sector performance was led by stronger than-expected credit growth after years of a lackluster performance, sharp margin uptick benefiting from the rate cycle
Private bankers said there were signs that the credit demand was durable and as such the landscape for banks' management of assets and liabilities would remain challenging for quite some time