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The impact of Covid-19 pandemic has affected lives and livelihood negatively across the board with global economic growth being disrupted. Consequently, the bank credit growth was tepid, however, following the relaxation in lockdown since June 2021, bank credit growth has been improving gradually.
Interest rates in the banking system have generally trended lower. However, the interest rate transmission has been uneven.
Furthermore, both foreign banks and private banks have not passed on the policy rate cuts as aggressively as the public sector banks and the overall scheduled commercial banks.
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