State-run banks cautious; target modest 11-13% credit growth in FY26

Despite sharp interest rate cuts, expected in the current financial year amid the easy liquidity conditions, state-run banks are treading cautiously on their loan growth projections for FY26.

 

Most large banks are projecting loan growth at around 11-13 per cent, almost similar to the previous financial year.

 

Similarly, banks’ deposit growth is expected to be in the range of 9-11 per cent as mobilisation of retail deposits continues to be a challenge. 

 

Bankers said credit growth is expected to be sluggish in FY26 owing to weaker demand across unsecured loans, mortgages.

 

They are also cautious on lending to non-banking financial