Bank credit to grow 15% YoY in FY23, FY24 on corporate demand: CRISIL

Lenders may have to raise deposit rates at faster pace, says senior executive of agency

Bank credit in India is likely to grow at 15 per cent in this financial year (FY23) and next (FY24) on the back of corporate demand recovering and the strong balance sheet of lenders, said CRISIL Ratings on Tuesday.

The estimate factors in an estimated seven per cent increase in gross domestic product (GDP) this fiscal, as well as impetus to credit growth from the government’s infrastructure push.

It takes into account higher working capital demand in a high-inflation environment, and some substitution of debt capital market borrowings. Strong balance sheets allow lenders to expand credit, said the rating agency