New Delhi, Sept. 9 -- Domestic credit growth in India could moderate to 15 per cent by March 2027 from around 18 per cent currently as a higher base from December weighs on growth, while banks may still see stronger expansion through their overseas branches, Jefferies said in its latest report.

The report said bank credit growth has remained strong, supported by higher credit demand and banks gaining market share from bonds and external commercial borrowings (ECBs). However, it expects the pace of domestic credit growth to ease as the base effect becomes stronger from December 2026.

"We expect sector domestic credit growth to moderate from 18% now to 15% by Mar-27 as base resets in Dec-26," Jefferies said.

The brokerage noted that syst...