India Banking Sector Report FY2025 Q3

In Q3 FY2025, the banking sector has continued to experience a moderation in credit growth. ICRA has revised its credit growth forecast for FY2025 downwards to 10.5-11.0%, from the previously estimated 11.6-12.5%. Deposit growth has also remained a concern, with y/y growth at 9.9% by the end of Q3 FY2025, the lowest since March 2023. The industry's credit-deposit ratio reached an all-time high of 80.4%, reflecting a more aggressive lending stance. Net Interest Margins (NIMs) are expected to remain largely stable for most lenders, with potential marginal declines for some institutions. While overall asset quality remains stable, concerns persist around unsecured lending portfolios, which are expected to witness continued deterioration. On the profitability side, earnings are expected to remain weak, particularly for public sector banks, largely due to lower treasury gains and potentially higher credit costs in some segments. The implementation of new liquidity coverage ratio (LCR) norms has been deferred from April 1, 2025, to at least March 31, 2026, potentially supporting banks' net interest margins and loan growth potential in the near term

This report provides a complete and detailed analysis of the "Banking and insurance" sector for India. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Banking and insurance" sector in India
• Crystallise the forces both driving and restraining this sector in India
• Ascertain India’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in India.
• Build a clear picture of trends, output and consumption for specific sub-sectors