ICRA Estimates Banks Credit Growth to Remain Subdued at 5-6 percent in FY17

ICRA Estimates Banks Credit Growth to Remain Subdued at 5-6 percent in FY17

As per the report of the rating agency, ICRA, the bank credit growth rate is likely to float between 5-6 percent in the current fiscal year.The reason cited includes weak loan demand as the rate of return offered by debt market is better in comparison to banks. Besides, the deposit rate was also projected to

drop to 12 percent from the current 14.7 percent this fiscal ending March 2017 due to better cash flow in the system and cut in the deposit rate by the banks.

ICRA Limited  

ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency. It is one of the largest Indian rating companies in term of customer base.

The Indian credit rating industry mainly comprises of CRISIL, ICRA, CARE, ONICRA, FITCH and SMERA. CRISIL is the largest credit rating agency in India, with a market share of greater than 60%.