BFSI: Retail vertical looks set to drive credit growth, says CRISIL

Within banks, credit issued to the retail segment, which was up 4 per cent as of October 2021, is expected to log 12-14 per cent growth this fiscal

Banks are expected to log a credit growth of 8-10 per cent in fiscal 2022 despite the slowdown in the economy due to the second wave of Covid-19 during the first quarter.

Growth will be driven by the retail vertical, which continues to gain market share over the wholesale vertical (comprising corporate and MSME but excluding agriculture).

The systems and processes put in place after the first wave of the pandemic helped both banks and NBFCs manage operations and collections during the second wave. 

Banks, however, have continued to outpace non-banking financial companies (NBFCs) in most segments. Private banks have logged faster growth