Large credit transactions or debt-funded leveraged buyout-style acquisitions, not previously common in India, are increasingly being used. Private credit deals are burgeoning, opening up another source of debt financing. The reduction by the Reserve Bank of India (RBI) of the cash reserve ratio (CRR), coupled with its rate cuts which brought the repo rate to 5.5% as of June 2025, has boosted loan growth. The CRR reduction increased liquidity by freeing up bank deposits and lowering banks’ effective funding costs. This enabled banks to lend more.
The article was authored by Tirthankar Datta, Partner, and Utsav Johri, Partner, was published in India Business Law Journal.
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Tirthankar specialises in banking & finance, financial services, mergers & acquisitions and cross border investments.