ANI New Delhi

Credit growth of Indian banks are expected to witness a range-bound 12.5 per cent growth in the current financial year 2025, HSBC Global Research said in a report, attaching a rider that slowdown in GDP growth remains a downside risk.

HSBC Securities and Capital Markets (India) Private Limited, in the report dated January 2, said it expects 2024-25 credit growth to remain range-bound. 

"Multiple headwinds like tight liquidity conditions, muted growth in deposits, GDP slowdown and high loan-to-deposit ratio remain key risks to credit growth," HSBC said.

Retail loan growth increased in November 2024, driven by unsecured personal loans, home loans and sustained growth in gold loans. There has been some reprieve in credit to NBFCs too.

In November 2024, non-food credit grew by 12.2 per cent year-on-year and 1.3 per cent month-on-month compared to 12 per cent year-on-year and 0.7 per cent month-on-month in October 2024. There was a broad-based growth pick-up across most major retail loan segments, the report asserted.