Commercial credit up 15% in a year as rate cuts spur demand

Commercial sector credit surged 14.7% year-on-year to over Rs 300 lakh crore by end-January, indicating increased loan demand following RBI’s 125-basis-point rate cuts. Banks have regained market share, with incremental credit growth rising 35% in the first 10 months of the fiscal year, driven by rate cuts and liquidity infusions.