Key Points
Moodys Ratings on Tuesday pegged the growth of the Indian economy at 6.6 per cent in the current fiscal year..
"We expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year, and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability," Moody's Ratings said...
"Funding costs for non-bank finance companies (NBFCs) in India are rising, but strong credit demand fuelled by the country's robust economic growth will support the sector's profitability...
Moodys FY25 GDP growth predictions are lower than the Reserve Bank of Indias (RBIs), as well as other agencies, but is at par with Deloittes forecast...
"Growth in unsecured retail loans will slow after the RBI raised the risk weight of such credit assets for both banks and NBFCs by 25 percentage points in December 2023," Moody's Ratings said...
