The private credit growth in last few years has been significant reaching over 30% in FY06. Private credit grew from insignificant levels to over Rs. 400 billion in FY06. The credit expansion fuelled economic activity, while reviving and enhancing industrial and other capacities. Credit diversification has helped achieve a degree of economic diversification too.
Therefore, there is tremendous pressure to achieve higher rate of returns on investments within lesser time periods than before. Already banks are in the mode of co-operation and co-existence as seen from the sharing of ATMs.