New Delhi, Sept. 2 -- Bank credit growth is expected to moderate in the second half of FY27 as the favourable base effect normalises and large corporates and NBFCs increasingly tap bond markets, according to an Anand Rathi Institutional report.

However, it also noted that bank credit growth will be supported by strong underlying demand, improved liquidity and easier access to market-based funding in the near term, but the pace of expansion may moderate in the second half of FY27.

It stated "the recent acceleration may moderate...... limiting the pace of bank-credit expansion in H2 FY27"

The credit offtake remained broad-based in July 2026, with industrial and services lending leading the acceleration. The broad-based growth indicates t...