 "Credit")
The market’s memory can be short. The same time last year we were fretting about weak deposit growth. Today, we are fretting about weak credit growth. We believe one thing is common across both periods. While all eyes look to the Reserve Bank of India (RBI) to help, the central bank can only partly address the problem using the monetary policy levers at its disposal. Instead, the root of the problem — and the real solution — in both instances lies elsewhere: The real economy and the composition of gross domestic product (GDP) growth. Let us explain.
Last year’s deposit
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
