ICRA Ratings predicts India's bank credit growth to slow to 12% in FY25, influenced by RBI's regulatory tightening.

ICRA Ratings projects a slowdown in India's bank credit growth to 12% for FY25, down from 16.3% in FY24, influenced by Reserve Bank of India's regulatory tightening. The share of retail and non-banking financial corporations (NBFCs) in credit flow has decreased, leading to concerns over borrowers' repayment capabilities and rising delinquencies in unsecured loans. NBFC asset growth is also expected to decline, impacting profitability and overall credit market dynamics.

October 24, 2024
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