12-13% growth likely in bank credit during FY26

Mumbai : Bank credit in India is expected to grow by 12-13 per cent in the current financial year, rising 100-200 basis points (bps) compared to the 11.0-11.5 per cent estimated for the previous fiscal, a new report said on Tuesday.

This improvement is likely to be driven by recent supportive regulatory steps, increased consumption following tax cuts, and a softer interest rate environment, according to a report by Crisil Ratings. Crisil Ratings Director Subha Sri Narayanan said credit growth in the corporate sector -- which accounts for 41 per cent of total bank credit -- is likely to rise to 9-10 per cent in FY26, up from an estimated 8 per cent in FY25. “This will be supported by improved lending to NBFCs.



The ongoing infrastructure projects are likely to push credit demand in sectors like cement, steel, and aluminium, even as companies remain careful about taking on new debt due to some tariff-related uncertainties,” she noted..