S&P Global Ratings predicts Indian banks may need to moderate loan growth to 14% in FY25 due to slow deposit growth.
S&P Global Ratings predicts Indian banks may need to moderate loan growth to 14% in FY25 due to slow deposit growth, with a decrease from 16% in FY24. Banks are experiencing a deteriorating loan-to-deposit ratio due to loan growth exceeding deposit growth by 2-3 percentage points. Aligning loan growth with deposit growth is crucial to avoid costly wholesale funding and maintain profitability.
April 28, 2024
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