Bankers in India are optimistic about the future, with the sector riding high on better asset quality, strong capital positions, and robust credit appetite in retail and SME spaces. A comprehensive survey underscores this positive momentum, attributing it to economic stability and capex revival.
FICCI-IBA’s latest findings paint a promising picture: banking growth is backed by healthy balance sheets and sustained demand from diverse sectors. The near-term outlook is broadly positive, with stable monetary policies expected to support growth without stoking inflation.
Cooperative banks alone foresee a 25 bps rate increase, but the consensus favors policy continuity. Non-food credit demand is set for consistent expansion, led by PSBs’ assurance from improved assets, capital strength, and corporate lending pickup.
Private sector lenders maintain a cautious yet proactive stance on credit growth, emphasizing prudence. Foreign banks show tempered enthusiasm, concentrating on institutional segments. Services sector optimism stands out, propelled by real estate, finance, logistics, and tourism upticks.
Nearly half the respondents expect 11-13% non-food credit growth. Retail loans continue to anchor expansion, while SME demand surges on better business sentiment, credit formalization, and government MSME initiatives.
Amid opportunities, cybersecurity risks top the worry list for banks. This survey, spanning January-February 2026, gathered insights from 24 diverse banking entities.
