Credit rating agency ICRA revised its bank credit growth projection for this fiscal to 14.9-15.3%, expecting the highest-ever incremental bank credit growth, surpassing the previous record. The anticipated system-level credit expansion would range between US$ 245.4-251.4 billion (Rs. 20.4-20.9 lakh crore). Despite a previous estimate of 12.8-13%, the agency now foresees stronger credit demand.
The credit rating agency, however, cautioned that global challenges and a higher base, coupled with deposit mobilization hurdles, might slow the incremental credit expansion to US$ 228.6-246.6 billion (Rs. 19-20.5 lakh crore) or 11.7-12.6% in FY25. Factors like weakened export demand, softer commodity prices, and deposit challenges could moderate bank credit growth in FY25. The agency also predicts corporate bond issuances will reach US$ 115.5-119.1 billion (Rs. 9.6-9.9 lakh crore) in FY24, surpassing the record set in FY23.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.