Rate cuts to lift credit growth, protect bank margins and boost NBFCs: Parag Thakkar

Fort Capital’s Parag Thakkar says India’s rate-cut cycle, supported by RBI liquidity, will boost credit growth while keeping bank margins largely stable. SBI and other low–CD ratio banks are best placed, while NBFCs will benefit most from falling funding costs. With asset quality strong and consolidation accelerating, both large banks and quality NBFCs are poised to lead the next lending upcycle.