New Delhi, Jan. 5 -- The lower GST rates will have a positive impact on credit demand on all sectors, which should help to support an improvement in overall system credit growth, said a report of Motilal Oswal Financial Services (MoSL) released here on Monday.
The report estimates that overall bank credit is likely to grow by around 12 per cent in FY26 and further strengthen to about 13 per cent in FY27.
The moderation in indirect tax rates has helped lower costs for both businesses and consumers, improving affordability and encouraging higher spending and investment. This, in turn, is translating into stronger demand for loans.
Recent trends already point to a recovery in credit momentum. After slowing earlier in the year, bank lending ...