More than two-thirds of banks see erosion in their low-cost deposits as customers chase higher yields

Some sectors like infrastructure, iron & steel and food processing are witnessing growth in long term credit demands. Major infrastructure development plans have been in place by the Government to facilitate quick capital spending with a strong multiplier effect and this is likely to spur demand for infrastructure financing, said the report. Bad loans on the other hand continue to show a positive trend as asset qualities improve. Bad loans showed a new decadal low to 3.2% as of September 2023, from 3.9% in March 23.