S&P Global Ratings has warned that challenges in mobilizing deposits to meet loan demand in India may impact credit growth in the next financial year (FY25). The credit rating agency predicts that credit growth could decline to 14% year-on-year in FY25, compared to the 16% recorded till December 2023. While credit demand is strong, the absence of a deposit boom is cited as a constraint. S&P expects system-level credit growth to moderate to 14% in FY25, with margins also set to fall. Private sector banks may be particularly affected, facing a potential increase in deposit competition.