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Banking sector's credit growth outlook remains strongly constructive: FICCI-IBA bankers’ survey
Oct-28-2026

The FICCI-IBA Bankers’ outlook survey for July - December 2026 has showed that despite emerging funding and macroeconomic headwinds, the banking sector's credit growth outlook remains strongly constructive, amid resilient demand across retail, SME, industrial and services segments. A total of 22 banks, comprising Public Sector Banks, Private Sector Banks and Foreign Banks, participated in this twenty-second round of the survey. Collectively, these banks account for more than three-fourths of the total banking assets in the country.

As pe the survey, nearly three-fourths of respondents expect non-food credit to grow in the mid-teens or higher year-on-year over the next six months, and almost all expect at least double-digit growth. Private Banks are the most optimistic, with nearly nine in ten expecting growth in the mid-teens or higher, followed by Public Sector Banks, where nearly three-fourths hold this view. Foreign Banks present a more measured view, with all respondents expecting growth at a lower double-digit pace, consistent with their more focused exposure to select segments.

The survey report further noted that retail and SME lending emerge as the clearest drivers of credit growth. More than four-fifths of respondents expect both retail loans and SME credit to grow at a robust double-digit pace y-o-y, and almost all expect double-digit growth in SME credit. Credit to industry is also expected to remain strong, with nearly all respondents expecting healthy expansion, while more than three-fourths expect credit to the services sector to grow at a robust double-digit pace, with half of all respondents projecting growth in the mid-teens or higher. The outlook for agriculture and allied activities is positive but more varied, with nearly three-fourths of respondents expecting double-digit growth.
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