New Delhi, Sep 10
The incremental credit flow of banks is expected to rise to Rs.19-20.5 lakh crore in FY2026 from Rs.18 lakh crore in FY2025 which represents a year-on-year (YoY) growth of 10.4-11.3 per cent for banks in the current financial year compared to 10.9 per cent in FY2025, according to an ICRA report released on Wednesday.
The NBFC credit (excluding the infrastructure-focussed entities) is projected to expand at 15-17 per cent in the current fiscal, compared to 17 per cent in FY2025, the report states.
While the pace of incremental bank credit growth in the current year lags at Rs.3.9 lakh crore for the first five months of FY2026 compared to Rs.5.1 lakh crore for the previous year, the GST rate cuts aimed at spurring domestic demand would support credit expansion for banks and NBFCs in the near term.
With the upcoming CRR cut and GST rationalisation, ICRA foresees credit growth at the higher end of its estimated range of 10.4-11.3 per cent for banks and 15-17 per cent for NBFCs.