Credit costs for banks, NBFCs, MFIs expected to significantly rise

CareEdge predicts rising credit costs for banks and microfinance companies, impacting profitability. Microfinance companies could see credit costs reach 6.5% of their loan book. India's GDP growth is projected at 6.5% in FY25, rising to 6.7% in FY26. The Reserve Bank is anticipated to cut policy interest rates by 50-75 basis points in 2025.