From The Economic Times · ET Bureau · · 40s
India Banking Sector Targets Double-Digit Credit Growth
India's banking sector forecasts double-digit credit growth despite economic headwinds.
In brief
India's banking sector forecasts double-digit credit growth despite economic headwinds. India's banking sector expects double-digit credit growth driven by retail and SME lending amid macroeconomic challenges. Originally reported by The Economic Times.
Banking Sector Outlook
India's banking sector maintains a strongly constructive outlook on credit growth underpinned by resilient demand across retail, SME, industrial and services segments.
“Banking sector maintains a strongly constructive outlook on credit growth, underpinned by resilient demand across retail, SME (small and medium enterprises), industrial and services segments”
Retail and SME Lending Drivers
Retail and SME lending emerge as the clearest drivers of credit growth with over four-fifths of respondents expecting robust double-digit year-on-year growth in both segments.
“Retail and SME lending emerge as the clearest drivers of credit growth. More than four-fifths of respondents expect both retail loans and SME credit to grow at a robust double-digit pace YoY (year-on-year), and almost all expect double-digit growth in SME credit”
Resilience Factors
The banking sector demonstrates resilience through improved asset quality, stronger capital buffers, and signs of private-sector capital expenditure revival.
“The banking sector continues to demonstrate resilience, supported by improved asset quality, stronger capital buffers, sustained retail and emerging signs of a broader revival in private-sector capital expenditure”
What to remember
India's banking sector expects double-digit credit growth driven by retail and SME lending amid macroeconomic challenges.
