According to Crisil's forecast, bank credit growth is expected to slow down slightly to 13% in FY27 compared to the previous year's 14%. However, there may be a rise in non-performing assets (NPAs) up to 2.5% by March 2027, with a focus on monitoring MSME loans and deposit mobilization.
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Corporate credit upgrades in India might have reached their peak, according to ICRA, Crisil, and India Ratings, due to global tensions and rising energy costs. Balance sheet strength is noted, but mid-tier firms and energy-dependent sectors face potential disruptions.
The Indian automotive industry might encounter supply issues by fiscal year 2027, potentially due to some vendors closing shop. This could be a result of escalating energy costs and concerns over critical resource availability, affecting various sectors within the industry.
Vedanta announced an interim dividend of Rs 11 per share for the fiscal year 2026, totaling Rs 4,300 crore. Crisil has also declared a final dividend of Rs 28 per share, with the record date set for April 3.
India's industrial production (IIP) increased by 5.2% year-on-year in February, primarily due to a 6% growth in manufacturing. However, rising energy costs, supply constraints, and geopolitical risks could potentially slow down the momentum in manufacturing and private sector recovery. (Source: Moneycontrol)
According to Crisil Ratings, the recovery rate for Asset Reconstruction Companies (ARCs) is projected to reach 90% next fiscal year due to resolution progress in sectors like real estate, roads, and power. However, private ARCs faced a 4% decrease in assets under management (AUM) this year, as redemptions exceeded acquisitions. The low supply of new stressed assets could pose challenges for future growth.
The credit rating agency, Crisil, predicts a moderation in housing sales growth for fiscal year 2027, estimating a rate of 4-6%, down from the previous forecast of 5-7% for FY26. This slowdown is attributed to a plateauing of average selling prices and demand levels.