New Delhi, Dec. 1 -- The credit growth of the banks in the country, which had slowed in recent quarters, is expected to pick up as companies begin to draw more funds for their day-to-day operations, highlighted a report by State Bank of India.

The report stated that the recent dip in credit offtake was temporary and mainly linked to the surge in IPO fundraising seen across several sectors. With those funds now being utilised, demand for bank loans is likely to rise in the coming quarters.

It stated "But increased working capital utilization by corporates credit growth is likely to rebound in coming quarters".

According to historical data, there is no direct one-to-one link between the amount raised through IPOs and overall bank credit ...