Archive · 3 Oct 2025
Crisil: Credit Growth Projected at 11-12% in FY26
Banks in India are expected to lend more money in the coming year, around 11-12%, according to a report.
This is because there's enough money in the banks, thanks to money from the Reserve Bank of India.
However, fewer people are keeping their money in regular bank accounts and are looking at other ways to invest.
This could make it slightly more expensive for banks to get money in the future.
The RBI has also helped banks by putting more money in the system.
Crisil projects 11-12% credit growth for FY26.
Growth is expected due to adequate deposit growth and increased liquidity.
RBI has injected liquidity through CRR and LCR measures.
Share of household deposits in total bank deposits decreased between 2020 and 2025.
Retail investors are increasingly choosing alternative investment avenues.
- Who
- Crisil Ratings
- What
- Report on Credit Growth
- When
- FY26
- Where
- India
- Why
- Assess credit growth influenced by deposit and liquidity conditions
General Market Sentiment
Analyst Expectations
Funding Costs
General Market Sentiment
Decreasing household deposits may lead to increased funding costs.
Analyst Expectations
Banks may seek to diversify their funding sources.
- Credit Growth Forecast FY26
- 11-12%
- Source
- Crisil Ratings
- Reason for Growth
- Adequate deposit growth and liquidity
- Liquidity Injection (CRR)
- Rs 2.5 lakh crore
- Liquidity Injection (LCR)
- Rs 1.9 lakh crore (estimated)
- Household Deposits Share Decline (2020-2025)
- 64% to 60%
Sources
RBI survey shows urban and rural consumer confidence edges up in September 2025
RBI Survey Shows Urban And Rural Consumer Confidence Edges Up In September 2025
On declining inflation, improving consumer confidence
Households see easing in price pressures in major food and non-food products: RBI Survey
RBI Survey Shows Optimism In Bank Lending; Loan Demand Set To Rise Across Sectors
