CRISIL Report Predicts Slower Bank Credit Growth in FY25
| Aspect | Details |
|---|---|
| Fiscal Year | FY25 |
| Predicted Credit Growth | 14% |
| Previous Year Growth (FY24) | 16% |
| Decline in Growth | 200 basis points |
| Key Factors for Slowdown | High base effect, revised risk weights, slower GDP growth |
| Corporate Credit Growth | 13%, driven by private sector capex in steel, cement, pharmaceuticals |
| Retail Credit Growth | 16%, supported by sustained consumer demand |
| MSME Credit Growth | Slowdown due to high base effect |
| Factors Influencing Corporate Credit | Capex recovery in key industries and emerging sectors (electronics, EVs, solar modules) |
| Challenges for Banks | Managing funding requirements, competition for deposits, elevated deposit rates |