Bank credit offtake is expected to grow at 13-13.5% in 2023-24 (April-March), aided by an expansion in the overall economy and a strong demand for loans, says CareEdge Ratings.
The credit rating agency feels that banks have adequate capital to absorb the impact of RBI measures on expected credit losses and unsecured personal loans.
Latest RBI data showed that credit offtake increased by 20.4% year on year (y-o-y) for the fortnight ended November 3 due to a strong demand for personal loans. Excluding the impact of the merger of Housing Development Finance Corporation with HDFC Bank, the growth stood at 15.9%.
Deposits too grew by 13.5% y-o-y for the fortnight ended November 3. Excluding the impact of the merger, growth stood at 12.7% y-o-y.
“Deposit growth is expected to improve compared to current trends in FY24 as banks look to shore up their liability franchise and ensure that deposit growth does not constrain the credit offtake,” the report said.