Retail Lending Drives Bank Credit Growth: 52% Forecast >13%
Retail lending is now the central pillar of India’s bank credit growth, with 52% of bankers expecting >13% YoY expansion and none forecasting below 9%, according to the FICCI-IBA Bankers’ Survey. The survey — covering 24 banks — projects overall non-food credit growth in the 11–13% range for H1 2026. SME, services, and retail lending are robust; industrial growth remains measured (9–13%). Term loans will be driven by infrastructure, real estate, autos, pharma, data centres, and defence. Cybersecurity is the top concern (71%), while AI (48%) and renewable energy financing (83%) lead strategic priorities.