Inflation, energy crisis, weak rupee may delay credit revival: Analysts

Revival of credit demand faces a triple whammy of unprecedented cost pressure, anemic volume growth, and scale-back in household budgets

The impact of the Ukraine-Russia war is being felt across geographies. India, on its part, will be hit by a contagion of high energy prices, sticky inflation, subdued consumption, and weaker-than-expected corporate earnings, caution analysts. All of this, they say, could delay the credit revival in the economy by at least two-three quarters.

Analysts at Credit Suisse say Indian credit growth may moderate, particularly in autos, SME and housing, on the back of rising oil and commodity prices and higher inflation. This, they said, comes at a time when there are signs of a pick-up in auto loans, with strong