As per S&P Global ratings, Credit growth in India is expected to moderate to 14 percent in FY25 from the existing 16 percent.

Economy Business

As per S&P Global ratings, Credit growth in India is expected to moderate to 14 percent in FY25 from the existing 16 percent. As per the report, system-level credit growth to moderate to 14 percent in 2024-25 from about 16 per cent year-on-year growth in the first three quarters of FY24. If credit and deposit growth rates remain steady, a period of deposit competition looms, squeezing bank margins to 2.9 percent from 3 percent. Adding to the stress on the private-sector banks, the lenders are growing at a much faster pace than public sector banks.


      With regard to capital adequacy ratio, the report said, most of India's banks can support loan growth as high as 15-20 percent for the next three years without need for large capital raising.

     

     

 

     


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