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India's credit growth is expected to slow further in FY26, with banks taking a cautious approach on unsecured loans and struggling with deposit mobilization amid falling interest rates.

"We expect the headline inflation in FY25 to cool off to 4.7 per cent. Monetary easing may be limited to 75 bps in FY26," Ind-Ra Chief Economist and Head Public Finance, Devendra Kumar Pant said.