Credit growth stress continues for banks

Mumbai: Credit growth in the banking system’s will moderate to 12.1-13.2 per cent in the current fiscal from 15.4 per cent in the year-ago period, a domestic rating agency said on Thursday.

Asset quality improvement will continue, while the Gross Non-Performing Assets (GNPA) ratio is expected to come down to 2.8-3 per cent by March 2024, as against 3.7 per cent at the end of the June quarter, domestic rating agency Icra said.

Amid the high growth in unsecured credit, the rating agency said there is nothing much to be concerned about on the front, and the vulnerable retail book remains low and manageable.