S&P Global Ratings has projected that the Indian economy will grow between 6.5-7 per cent annually in the three fiscal years till March 2027 as infrastructure spending and private consumption drives growth momentum.

In its global bank outlook report, S&P Global Ratings also said that good economic growth prospects will continue to support banks' asset quality, while healthy corporate balance sheets, tighter underwriting standards and improved risk management practices will further stabilise asset quality.

It said that structural improvements and good economic prospects will support the resilience of India's financial institutions. India's infrastructure spending and private consumption will support robust economic growth.

The US-based rating agency further said that the Reserve Bank of India (RBI) is becoming more vocal and imposing heavy penalties on banks even as it focuses on technology, compliance, customer complaints, data privacy, governance and know-your-customer issues.