Return to normalcy will be the norm in 2022

2022 will mark a return to more familiar patterns of growth and the beginning of a new round of innovation for all players in the financial system

The year 2022 will be an inflection point for the banking system as significant changes play out over the next year.

First, the economy is likely to gather pace, resulting in higher credit demand. While the GDP growth for FY22, which is likely to be in the range of 9-11 per cent, represented a smart recovery, it would still translate to not more than 1.4-2.5 per cent growth over FY20 and was, therefore, not fully reflected in the corresponding credit demand. Thus, while we may expect growth to be in the region of 7-7.5 per cent next year, this should push