Why Credit growth to slow to 14% ?
Bank credit growth in FY25 is expected to moderate 200 basis points (bps) to 14% from an estimated 16% in FY24 due to a high base effect, a revision in risk weights and a slower pace of gross domestic product (GDP) growth, CRISIL Ratings said in a report
However, a revival in private corporate capital expenditure, especially towards the second half of the current year could provide a tailwind, the rating agency said.
Stating that the fundamental drivers of credit demand were broadly intact, the pace of deposit growth could keep a check on credit growth, even though the differential between the two had reduced over the past year
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