There has been a slowdown in credit offtake for banks, said O P Bhatt, Chairman of SBI. He also added that the current growth rate of 19 to 20% is insufficient to raise interest rates.

"The economy is growing at 8-9 per cent. It is a mystery to me also because the credit offtake is low compared to what we are expecting. Though there is slight pickup, it is still not enough," Bhat said.

Talking about probable reasons for this dip, he said that there might be other available sources of credit which are seeming to be more lucrative to borrowers than banks.

"May be better productivity, better management in the system could also be the reason," he said.

The dimly rising loan book has been a major concern for banks after Q1.

"Because of the nature of the financial institutions across the world, nobody is sure of what kinds of assets are available and surprises are available. Acquisitions wise I don't think so there will be anything concrete come out in the financial year," the banker said while highlighting the bank's intentions of slowing down overseas acquisitions till the time there is some stability in global economic conditions.