Bank credit growth robust at 17.1% in FY26, but West Asia crisis dampens near-term lending outlook, govt. report says
Apr 29, 2026
India's banking sector is expected to sustain credit growth momentum in the coming quarters, even as the prevailing crisis in West Asia has tempered banker sentiment for June quarter of the Financial Year 2026-27, according to the Department of Economic Affairs' monthly economic review - April 2026 . While loan demand and ease of terms have moderated, underlying financial stability indicators remain strong, supporting a positive outlook for FY27, the report stated.