Summary:

HSBC Global Research forecasts that India's bank loan growth will remain range-bound at 12.5% in 2024-25. According to the analysis, a slowdown in GDP growth could have a negative impact. The January 2 study from HSBC Securities and Capital Markets (India) Private Limited attributes the limited growth to factors such as tight liquidity conditions, subdued deposit growth, a high loan-todeposit ratio, and a projected GDP slowdown.

In November 2024, non-food credit increased by 12.2% year-on-year (1.3% month-on-month), up from 12% in October. Retail loans grew by 13.3% year-on-year and 1.5% month-on-month, driven by personal, home, and gold loans. Corporate loans rose by 9.6% year-on-year and 1.5% month-onmonth, while MSME loans increased by 13.8% year-on-year. Gold loans grew by 6.7% month-onmonth. Credit card receivables increased by 18.1% year-on-year. Despite the hurdles, retail loans experienced broad-based growth.

Source: IBEF

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