Mumbai: Rating agency Icra expects credit growth to moderate in the second half of FY27 and remain subdued into the next fiscal year as hardening policy rates weigh on consumption demand.A higher base is also likely to show optically lower growth, Icra said.The rating agency also expects banks' asset quality to deteriorate marginally as credit expands, while net interest margins (NIM) are likely to improve as the Reserve Bank of India's rate-hiking cycle progresses.Read more: Vedanta Iron Q2 Results: Loss narrows to Rs 324 crore, revenue declines 2% YoYIcra has projected credit growth to ease to 15-16% for the full year FY27, from the current 18-19%.
The agency did not provide a specific estimate for credit growth in FY28.Live EventsRead more: D-Street in gloomy mood, but Kotak sees 3 triggers for rebounds and adds 5 midcap stocks to portfolioFresh slippages for public sector banks are estimated at about ₹1 lakh crore in FY27, from ₹0.9 lakh crore in FY26. For private players, fresh slippages can be at ₹1.3 lakh crore.(You can now subscribe to our ETMarkets WhatsApp channel)
