To Rs., loans to the private sector went up by 12% year-over-year (YoY). 9.6 trillion in FY25, which is slightly more than the average growth rate of 11% over the past decade.
Private sector credit stands at just 8.4% of GDP in FY25, well below the 15.2% of GDP recorded in FY18, according to data from the central bank.
In FY25, auto financing, a subset of private sector loans, also experienced a significant recovery, rising by 20% year-over-year.
Topline Securities anticipates double-digit loan growth in FY26 due to the sharp drop in interest rates and uptick in economic activity.
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