HSBC has observed stabilization in credit growth within the banking sector after five months of moderation. The report highlights non-food credit growth at 12.2% YoY and 1.3% MoM in November 2024, signaling a recovery in lending activity.
Key highlights from HSBC’s analysis:
- Improved sequential growth:
- Growth in credit to NBFCs and retail loans, particularly unsecured personal loans, has shown significant improvement on a month-on-month basis.
- Base case forecast for FY25:
- HSBC projects 12.5% credit growth for FY25, driven by stable demand from NBFCs and the retail sector.
- Downside risks:
- A potential slowdown in GDP growth poses a notable risk to the sector’s overall credit growth trajectory.
HSBC’s outlook reflects cautious optimism, with stable credit growth expected in FY25, while macroeconomic factors such as GDP trends could influence the banking sector’s performance.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
