Icra Projects Credit Growth To Ease To 15-16% in FY27
· Business · Economic Times
Rating agency Icra expects credit growth in India to moderate to 15-16% for the full financial year FY27, down from the current 18-19%. Hardening policy rates are projected to weigh on consumption demand, while a higher base will create optically lower growth figures. Fresh slippages for public sector banks are estimated to increase to ₹1 lakh crore in FY27 from ₹0.9 lakh crore in FY26. Private sector banks are expected to record fresh slippages amounting to ₹1.3 lakh crore during the same fiscal year. Asset quality across the banking sector may deteriorate marginally, while net interest margins are likely to improve as the Reserve Bank of India's rate-hiking cycle progresses.
Why it matters
The moderation in credit growth and rising slippages will directly impact bank balance sheets and borrowing costs for retail and corporate consumers across India.
Read the original report — Economic Times
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