Private sector lender Kotak Mahindra Bank said that it is witnessing a slowdown in credit growth due to a dip in demand from corporate and small businesses, said the media report.
"Credit growth has slowed down...it is more from corporates and SMEs where demand has slowed down as no projects are coming up," bank's Joint Managing Director, C Jayaram, told media.
He said issues on the asset quality on construction equipment and commercial vehicles segments are "unfortunately still on" and the bank continues to be cautious on those segments.
The private sector bank, which is among the last ones to commence banking operations over a decade ago, had consciously taken a decision to go slow on lending to this segment due to asset quality issues. Further, Jayaram added that markets are not expecting any major reform from the government in the run-up to the elections and any policy action will come from the new government.
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