The Report delves deep into the underpinnings of the current high credit growth environment, trying to decode if the same is indicative of a sustained and extensive private capex revival. It presents the gush of FCNR(B) deposits as welcome in a milieu of high C/D, and studies the implications of the same on borrowings, investments, and deposit rates of banks. Finally, the Report estimates the capital required by banks in the medium term to sustain credit growth, and the likely mix of instruments which could be issued.
