Crisil sees credit growth at 11-12% in FY26
Crisil Ratings expects India's credit growth to reach 11-12% this financial year, mainly because retail borrowing is picking up again.
The boost comes from things like GST tweaks, lower interest rates making loans more affordable, and some relaxed rules for banks and NBFCs.
Retail credit to grow faster than last year
Retail credit is set to grow by 13%—faster than last year's 11.7%—driven by factors like GST rationalization and better affordability.
Corporate lending will likely rise by just 9%, a bit less than last year.
MSME loans are steady but cautious, especially in export-heavy sectors.
Risks to watch out for
Deposits should keep growing too, but households now make up a smaller share (down from 64% in March 2020 to 60% by March 2025).
Non-financial companies are filling that gap, which could shake up deposit stability.
While overall bad loans are down, there's still risk with unsecured retail loans and MSMEs focused on exports—so banks will need to keep a close eye.