Synopsis
Bank credit growth maintained a double-digit growth and continued to outpace deposit growth in FY23. The personal loans segment has remained the largest segment, along with NBFCs, while the industrial sector reported muted growth. The private sector banks (PVBs) have continued to outpace the public sector banks (PSBs). The medium-term prospects look promising with rising personal loans along with NBFC borrowings and a substantial buffer for provisions. Additionally, given that in FY23, credit offtake closed with a growth of 15%, it would be working off a higher base CareEdge estimates the credit growth to be in the range of 13%-13.5% during FY24 excluding the impact of the merger of HDFC with HDFC Bank, if we include the merger, the growth is likely to be higher by around 3%. However, elevated interest rates and global uncertainties could adversely impact credit growth.
In_FY24_Credit_Offtake_to_Continue_Rising_and_Outpacing_Deposit_Growth
