S&P Global official sees Indian banks' credit growth at 11-12% in FY26
This story was originally published at 18:32 IST on 17 September 2025
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--Crisil Joshi: Capex not growing faster than GDP is a challenge
--CONTEXT:Comments from Crisil Chief Economist Joshi at event by S&P Global
--S&P Global Chugh: Expect banks' credit growth around 11-12% in FY26
--CONTEXT: Comments from S&P Global MD Fincl Svcs Geeta Chugh at an event
--S&P Global Chugh:Hope pvt capex to grow to $800 bln-$850 bln/yr over 5 yrs
MUMBAI – Indian banks' credit growth is expected to be soft in the current financial year and hover around 11-12%, Geeta Chugh, managing director, sector lead financial service ratings, South and Southeast Asia, S&P Global Ratings, said at an event here. Chugh said India's private credit industry is poised for strong growth, having already raised around $10 billion in the current financial year, higher than the amount raised in the whole of last year.
Chugh also said private capital expenditure, which may be a little slow in the current and the next financial year on account of uncertainties around the globe, is expected to grow to $800 billion-$850 billion over the course of the next five years.
Speaking at the same event, Dharmakirti Joshi, chief economist at Crisil Ltd., said India's capital expenditure not growing faster than the GDP is a challenge for the country. However, a comparison of "India's growth performance with that of advanced economies shows that while past external shocks have caused short-term challenges for India, they have not derailed the country's long-term growth trajectory".
For India to achieve developed country status by 2047, the government and other public stakeholders must balance enhancing domestic growth drivers, attracting foreign capital, and improving external market access, Joshi said. "The economic outlook of India for fiscal 2026 and beyond will be influenced by global tariff shocks as well as how domestic buffers and policy levers can be shaped to provide a cushion," he said.
S&P Global also expects India to become the second-largest market for data centre power demand in the Asia-Pacific region by 2028, surpassing Japan and Australia. Moreover, India's shipbuilding industry aims to scale global heights, targeting a position among the top five shipbuilding nations by 2047, the rating agency said. End
Reported by Kabir Sharma
Edited by Rajeev Pai
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