MUMBAI: The high quantum of impaired assets will restrict the credit growth for fiscal 2018-19 to 8%, and India Inc will borrow more from cheaper sources abroad, a report said on Thursday.
External commercial borrowings (ECBs) will go up to $27-32 billion on the back of relaxed norms announced by the RBI and the high rate of borrowing domestically, ratings agency Icra said. Despite recapitalisation of the state-run lenders and private sector players upping their game with a 25% credit growth, the overall system credit expansion will come at 7-8%, it added.
The country’s banking system is supposed to have ended FY18 with a credit growth of nearly 11%.
External commercial borrowings (ECBs) will go up to $27-32 billion on the back of relaxed norms announced by the RBI and the high rate of borrowing domestically, ratings agency Icra said. Despite recapitalisation of the state-run lenders and private sector players upping their game with a 25% credit growth, the overall system credit expansion will come at 7-8%, it added.
The country’s banking system is supposed to have ended FY18 with a credit growth of nearly 11%.