With the government slashing goods and services tax rate across 396 items on Wednesday, banks and non-bank financial companies expect the move to boost credit demand as consumers would have more disposable income at their hands. “Household goods earlier taxed at 12% and 18% will fall under the 5% category, which will provide tangible relief in form of lower cost on essentials and higher disposable incomes. With greater spending power, demand and credit expansion will rise, driving economic growth,” C. S. Setty, Chairman of State Bank of India and IBA.