New Delhi, May 8 -- Indian banks are entering a phase of moderated expansion, with credit growth expected to cool to 12-13 per cent in FY27E, according to Way2Wealth's Thematic Report - Banking Sector. This anticipated slowdown stems from a combination of demand-driven cooling and supply-side constraints as lenders navigate a tightening liquidity environment.

While deposit growth is projected to stabilize and improve marginally to match credit growth at 12-13 per cent by FY27E, the traditional reliance on low-cost savings is under significant pressure.

"The deposit challenge is not a temporary imbalance that will self-correct when credit growth slows. It reflects a permanent structural shift in India's financial savings landscape. House...