Icra sees bank credit growth slowing to 15-16% in FY27 as rates rise

A higher base is also likely to show optically lower growth, Icra said.

The rating agency also expects banks’ asset quality to deteriorate marginally as credit expands, while net interest margins (NIM) are likely to improve as the Reserve Bank of India’s rate-hiking cycle progresses.

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Icra has projected credit growth to ease to 15-16% for the full year FY27, from the current 18-19%. The agency did not provide a specific estimate for credit growth in FY28.

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Fresh slippages for public sector banks are estimated at about ₹1 lakh crore in FY27, from ₹0.9 lakh crore in FY26. For private players, fresh slippages can be at ₹1.3 lakh crore.

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