Credit growth to moderate in H2, FY27: Icra
Credit growth is projected to ease to 15-16% for FY27, impacted by hardening policy rates. Fresh slippages for public sector banks are estimated to increase to ₹1 lakh crore in FY27. Private banks may experience fresh slippages amounting to ₹1.3 lakh crore. While banks' asset quality may deteriorate slightly, net interest margins should improve. The overall...
Key Takeaways
- Credit growth is projected to ease to 15-16% for FY27, impacted by hardening policy rates.
- Fresh slippages for public sector banks are estimated to increase to ₹1 lakh crore in FY27.
- Private banks may experience fresh slippages amounting to ₹1.3 lakh crore.
Credit growth is projected to ease to 15-16% for FY27, impacted by hardening policy rates. Fresh slippages for public sector banks are estimated to increase to ₹1 lakh crore in FY27. Private banks may experience fresh slippages amounting to ₹1.3 lakh crore. While banks' asset quality may deteriorate slightly, net interest margins should improve. The overall banking sector faces challenges amid these credit growth expectations and market conditions.
Original Publisher Attribution
This summary was curated from Economic Times.