Corporate Loan Demand Drives Bank Credit Growth

In the first quarter of the fiscal year 2026-2027, big banks in India saw a lot of companies asking for loans.

This is because companies need more money for their daily operations and because borrowing from the bond market is less attractive now.

Banks like HDFC, ICICI, Kotak Mahindra, and Federal Bank reported big increases in corporate loans, some as high as 19%.

This growth is happening across many sectors like energy, infrastructure, and real estate.

On the other hand, loans to regular people, like home loans, are not growing as much.

Experts are watching to see if this trend will continue and if companies will keep borrowing more to invest in their businesses.