Bank credit off-take is expected to witness growth between 13-13.5 per cent in the fiscal year 2023-24 (April-March), supported by the overall expansion of the economy and a strong demand for loans, according to CareEdge Ratings.
The credit rating agency is optimistic about the adequate capitalisation of banks, allowing them to absorb the impact of RBI measures on anticipated credit losses and unsecured personal loans.
The latest data from the Reserve Bank of India (RBI) reveals that credit offtake recorded a substantial 20.4 per cent year-on-year increase for the fortnight ending 3 November.
This surge is attributed to a robust demand for personal loans. When adjusting for the impact of the merger of the Housing Development Finance Corporation with HDFC Bank, the growth rate stood at 15.9 per cent.