New Delhi, July 9 -- Bank credit growth is expected to moderate gradually in FY27 as large companies increasingly shift to bonds and overseas borrowings, aided by the Reserve Bank of India's recent measures that have reduced the cost of overseas borrowings, according to a CareEdge BFSI Research report.

The report said overall credit demand is expected to remain healthy, but banks are likely to account for a smaller share of corporate funding as market-based sources become more attractive.

"Bank credit growth is expected to moderate gradually as funding preferences increasingly shift towards market-based sources," the report said.

According to the report, the RBI's recent policy measures have improved banks' funding position while also ...