New Delhi, Dec. 16 -- Banks and Non-Banking Financial Services (NBFCs) remain key drivers of India's economic growth with the sectoral credit growth remained consistently higher than GDP growth, a recent report by Motilal Oswal Financial Services said.

By 2024-25, bank credit is projected to rise further, reinforcing expectations that credit growth will continue to outpace GDP growth.

However, despite the steady growth, India's retail credit penetration remains far below global standards, the report said. Asset quality of the banking sector has dramatically improved in the recent past leading to a sharp drop in credit cost.

The credit-to-GDP ratio, after peaking around the early 2020s, remains elevated, underscoring the banking sector'...