Banks Eye 10-12% Credit Growth in H2FY26 Amid Festive Season, Despite Global Trade Concerns

Indian banks are optimistic about achieving 10-12% credit growth in the second half of FY26, supported by the upcoming festive season and strong consumer demand. Despite lingering concerns around global trade disruptions, particularly the impact of fresh US tariffs on Indian exports, the domestic banking sector expects robust credit activity across retail and corporate segments. According to industry experts, consumer lending for durables, housing, and festive purchases will drive much of this growth. The banking sector has also strengthened digital channels and loan-disbursal mechanisms, making credit access faster and more seamless for customers. The expected spike in demand during the festive months of October to December is seen as a major catalyst for loan uptakes. While global uncertainties and tariff-related headwinds remain, banks are focusing on domestic consumption and government-led infrastructure projects to sustain momentum. Public sector and private lenders alike are betting on a strong recovery cycle, despite potential challenges in export-driven industries. Experts also note that the RBI’s stable monetary policy stance provides confidence to lenders, with interest rates expected to remain steady. This has encouraged both businesses and individuals to consider borrowing, fueling the anticipated double-digit growth.