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Strong bank loan growth in FY23 despite higher interest rates: Fitch

Fitch forecasts India's real GDP growth at 7 per cent in 2022-23. It said Indian banks generally remain open to additional capital-raising to fund growth, despite the rise in rates.

November 28, 2022 / 12:56 PM IST
Fitch Ratings/File image/PTI

Fitch Ratings/File image/PTI

Fitch Ratings on Monday said India's bank credit will see strong growth in current financial year despite effects of higher interest rates.

It said the strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins.

"We see bank credit expanding by around 13 per cent in FY23, up from 11.5 per cent in FY22. The acceleration will be driven by the normalisation of economic activity after the COVID-19 pandemic, and high nominal GDP growth, which we expect to boost demand for retail and working-capital loans," Fitch said in a statement.

Fitch forecasts India's real GDP growth at 7 per cent in 2022-23. It said Indian banks generally remain open to additional capital-raising to fund growth, despite the rise in rates.