This should normally have resulted in a lower cost of borrowed funds and a substantial rise in demand for bank loans. However, the slower credit growth compared to last year may be due to weak demand for credit for fresh investments and project expansion. He also stated that “this trend continues during the current financial year.” As per the RBI’s definition, this flow includes bank loans, loans from non-banks, LIC investments in corporate debt, and funds raised overseas. According to the BCG paper, 2016-18 was the only phase in which credit growth aligned with falling interest rates. These figures highlight the declining trend in credit growth, which is a key indicator of economic expansion.