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Corporate Preference for Alternative Funding Keeps Bank Credit Growth Subdued

Published on: Aug. 2, 2025, 12:05 p.m. | Source: Devdiscourse

Bank credit growth is projected to stagnate as corporations increasingly explore alternative funding options amid low-interest rates. The State Bank of India (SBI) report highlights a shifting trend, with non-bank funding growing faster than traditional loans, particularly affecting the Micro, Small and Medium Enterprises (MSME) sector.

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