The rating agency expects system-level credit growth to moderate to 14% in FY25, starting April 1, from about 16% annual growth in the first three quarters of FY24, with margins also set to fall.
After RBI decided to retain the repo rate at 6.5 per cent, experts said the short-term fixed deposit schemes may see an upward rate revision, while the longer-term rates may remain flat in the coming months.
In a written reply, minister of state for finance Pankaj Chaudhary said the Centres internal debt ratio has been moderating since hitting 58.3% of GDP in the Covid year of FY21. Its estimated to touch 55.4% of GDP, or Rs 164.44 lakh crore, in FY24. In absolute terms, the external debt will touch Rs 7.93 lakh crore in FY24, according to the revised estimate.