New Delhi, Nov. 2 -- India's bank credit growth may moderate in FY27 despite healthy borrowing demand from retail customers, micro, small and medium enterprises (MSMEs) and businesses, as higher interest rates, a stretched base and tightening liquidity are expected to slow fresh loan demand, according to a report by Anand Rathi.

The report said credit growth has accelerated across several sectors, indicating that borrowing activity is expanding beyond retail lending towards businesses and investment-related sectors. However, the pace of growth is expected to ease in the current financial year.

"The deceleration looks more statistical than demand-led, though tighter rates may lead to a modest uptick in fresh slippages," the report said....