New Delhi, Aug. 2 -- Credit growth of banks in the country is likely to remain low as corporates continue to opt for alternative methods of funding in the current low-interest rate environment, according to a report by the State Bank of India (SBI).

The report noted that corporates tend to avoid bank loans when interest rates are low and instead explore other sources of funding.

It stated, "Bank credit to remain low as corporates are using other avenues of funding in low-interest rate regime"

The report has analysed data on resource flows over the past eight years and observed that during periods like FY21 and FY22, when interest rates were low, companies typically relied on non-bank sources for raising funds. The same pattern appears ...