Chennai, Oct 31:
Banking sector maintains strong constructive outlook on credit crowth for the period July to December 2026, according to FICCI-IBA Bankers’ survey.
The 22nd round of the survey captured industry sentiment on the banking sector outlook for the period July to December 2026. A total of 22 banks, comprising public and private sector and foreign banks participated in this round. Collectively, these banks account for more than three-fourths of the total banking assets in the country.
The survey was conducted against the backdrop of a resilient Indian economy, with real GDP growth accelerating to 7.8% in Q1 FY2026-27, supported by robust manufacturing and services activity, while real Gross Value Added (GVA) grew by 8.2%. Investment activity also strengthened, with gross fixed capital formation rising by 11.9%, alongside 7.1% growth in private final consumption expenditure.
At the same time, CPI inflation stood at 4.82% in August 2026, with food inflation at 5.95%, an increase from the levels seen earlier. India’s banking sector continues to demonstrate resilience, supported by improved asset quality, stronger capital buffers, sustained retail and SME credit momentum, and emerging signs of a broader revival in private-sector capital expenditure.
Against a backdrop of strong domestic growth momentum, evolving inflation dynamics and heightened geopolitical and global trade uncertainties, the survey offers insights into the credit outlook, sectoral credit demand, emerging risk perceptions and the strategic priorities shaping the banking ecosystem during the second half of 2026.