Indian banks brace for 11 to 13 percent credit growth despite tough years ahead

Retail and SMEs could lead while industrial picks up slowly

A survey of bankers suggests India’s banks are set for robust non-food credit growth of about 11–13% in January–June 2026. Improving balance sheets and steady economic activity are expected to lift lending, with retail and SME segments driving most of the expansion. Industrial credit is projected to recover more gradually, while monetary policy is widely seen as likely to stay stable.