The country's second largest private lender, HDFC Bank Ltd is expecting loan growth in FY14 on the back of higher gross domestic product (GDP) growth.
Mr. Paresh Sukthankar, executive director of HDFC Bank said, "If you do have the economy going back to a six per cent-plus growth rate, the financing needs of a growing economy would be met by the banking system. I see no reason why credit growth won't be somewhere at 16-17 per cent range this year and potentially going up to the higher teens as the GDP growth picks up".
Mr. Sukthankar added, "As we get into the next financial year, there is every chance that we move to a growth rate which is somewhere between 6-6.5 per cent and potentially thereafter somewhere closer to seven per cent".
Rate cut is likely to be done next year probably around 50 basis points, said Mr. Sukthankar.