Bank credit is likely to grow at a four-year high of 11-12 per cent in fiscal 2023, on the back of better economic growth and budgetary support from the government, according to a report.
In the fiscal ended March 2022, bank advances have likely grown at 9-10 per cent.
"Healthy economic growth and budgetary support from the government should lift bank credit growth by 200-300 basis points to 11-12 per cent this fiscal," Crisil Ratings said in the report.
The higher credit growth expectation is also supported by the improved resilience of the banking system, it added.
Its Senior Director and Deputy Chief Ratings Officer Krishnan Sitaraman said the biggest difference expected this fiscal is the upshift in the corporate credit growth trajectory, which is likely to double to 8-9 per cent.
"The Union Budget pegs public capex outlay at around Rs 7.5 lakh crore, a significant increase over the last fiscal, with a sharp focus on public infrastructure.
The downstream impact of this on core sectors, along with the Production Linked Incentive (PLI) scheme announced for 13 key sectors, will be the drivers," he said.
