Credit growth in India to moderate to 14% in FY25: S&P Global
"Deposit tightness will remain a system overhang. Our base case is for loan growth to slightly moderate, leading to manageable competition for deposits. Indian banks will have to strike a fine balance between maintaining strong loan growth and paying more for deposits to fund that growth," S&P Global Ratings said. If the clash for deposits gets fiercer, Indian banks will take a hit, either with slimmer margins or slower growth, it said
As per the report, system-level credit growth to moderate to 14 per cent in 2024-25 from about 16 per cent year-on-year growth in the first three quarters of FY24. Image Courtesy: Freepik.