New Delhi, Nov. 10 -- India's credit growth accelerated to 21 per cent year-on-year in October, led by stronger borrowing across corporate and small business segments, prompting HSBC's banking team to raise its loan growth forecast for the current financial year to around 18 per cent from 14 per cent earlier.

According to HSBC's latest Asia equity strategy report, corporate lending increased around 24 per cent year-on-year, while credit to micro, small and medium enterprises (MSMEs) grew 25 per cent, indicating broad-based momentum in demand for loans.

The report said, "Our banks team expect credit growth remain strong, and have increased their FY27e loan growth estimate to c18% y-o-y (from 14%)".

Deposit growth also accelerated to ove...