New Delhi, June 19 -- The Reserve Bank of India's recent reduction in the Cash Reserve Ratio is projected to generate additional credit growth of 1.4-1.5 percent, according to a new analysis by the State Bank of India.

The monetary policy measure is anticipated to enhance liquidity within the banking system and facilitate improved credit flow throughout the economy.

The SBI report indicates that the CRR reduction will release approximately Rs 2.5 lakh crore in primary liquidity by December 2025.

This substantial liquidity injection represents a significant step toward easing financial conditions and supporting broader economic activity across various sectors.

Credit growth experienced a notable deceleration in FY24-25, dropping to app...