Goldman Sachs Flags Indian Private Banks for Slowdown in Loan Growth
Goldman Sachs has initiated coverage on 14 Indian banks, expecting sector loan growth to slow down to 14-15% through fiscal year 2029. This represents a moderation from earlier credit expansion levels as the lending environment matures amid evolving monetary conditions.
The brokerage highlighted six private-sector lenders: ICICI Bank, Kotak Mahindra Bank, HDFC Bank, Axis Bank, Federal Bank, and AU Small Finance Bank. These banks have historically commanded premium valuations relative to public-sector peers, and continued preference for these names may reinforce that trend.
Goldman Sachs' decision to cover 14 lenders underscores the sector's significance within India's broader financial system. However, the outlook remains tied to how credit demand and deposit mobilization evolve in the coming years.