Mumbai, Oct. 27 -- Credit growth across Indian banks and non-banking financial companies (NBFCs) is expected to remain resilient in the current financial year, supported by steady retail demand, adequate liquidity and strong balance sheets, according to credit rating agency ICRA Limited.

Speaking to ANI, Ashish Modani, Senior Vice President and Group Head - Financial Sector Ratings at ICRA Limited, said banks are likely to maintain stable profitability in 2026-27.

"On the margins front, the overall cost of funds benefits from surplus liquidity in the system, while yields are likely to benefit from the onset of the rate hike cycle," Modani said.

He added that credit costs may rise slightly but are expected to remain under control.

"Whi...