Banker's credit growth forecast: 11-15% in FY26
India's top bankers are feeling upbeat about the coming year, expecting credit growth to hit 11-15% in FY26.
This positive outlook follows steady gains—credit grew 10% year-on-year as of August 2024.
The boost comes from recent GST tweaks—explicitly aimed at spurring consumption—and interest rate cuts, both of which are expected to encourage spending, especially with festival season around the corner.
Banks optimistic about lending surge
State Bank of India's MD, Amara Ram Mohan Rao, said he's confident about reaching 12-13% growth if tariff issues get sorted soon.
Other big names—from Punjab National Bank and Bank of Baroda to IndusInd Bank—shared similar predictions at CNBC TV18's Banking Transformation Summit.
With new GST cuts on a range of household goods kicking in this September, banks are hoping for a lending surge as demand picks up.