New Delhi, July 17 -- India's banking sector is expected to remain resilient in FY27, supported by healthy capital buffers, improving asset quality and sustained credit demand, although lenders are likely to face pressure from narrowing margins and intense competition for deposits, according to a report by CareEdge Ratings.
The ratings agency expects bank credit growth to moderate to 14.5-15.5pc in FY27 after a strong expansion in FY26, as large corporates and NBFCs increasingly shift towards bond markets and external commercial borrowings (ECBs) amid improving financing conditions.
Nevertheless, credit demand is expected to remain healthy, backed by robust domestic economic activity, improving liquidity and continued government capital e...