Mumbai: Domestic credit rating agency India Ratings on Thursday revised its FY27 bank credit growth estimate upward to 15 per cent from earlier 13 per cent, but flagged an impact on profitability as lenders set aside money for transitioning to the expected credit loss system of provisioning.
The upward review on the credit costs front is driven by expectations of a higher proportion of lending to corporates towards working capital requirements, especially on the back of benefits on cash reserve ratio (CRR) on the deposits raised from the diaspora, the agency said, adding that tighter bond yields will also make bank borrowings more attractive for non-banking finance companies (NBFCs).
