Indian banks' asset quality pressures subside, supporting growth; bank loans up 16% in FY24, private banks gain market share, and retail loans grow at 20% CAGR since FY21.
Fitch Ratings reports that Indian banks' asset quality pressures are subsiding, supporting their potential for growth. Bank loans grew by 16% in FY24, similar to FY23. Large private banks gained significant market share, while state banks returned to brisk growth. Retail loans grew at a 20% CAGR since FY21. Despite low household debt and strong loan growth, Fitch warns that rapid consumer loan growth may challenge underwriting standards and risk controls.
May 13, 2024
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