Archive · 5 Sep 2025
Banks Anticipate Credit Growth Boost from Festive Season, GST Cuts
Banks in India are hoping for more people to borrow money during the upcoming festivals.
They expect credit growth to improve in the second half of the financial year.
This is because of the festive season, potential tax cuts, and lower prices due to GST changes.
Banks are offering special deals, like lower interest rates on loans, to attract customers.
This could lead to more people taking out loans for things like cars or houses.
Banks like HDFC and Axis are offering deals on credit cards and easy payment plans.
Overall, banks believe the economy will improve due to these factors.
Banks are optimistic about credit growth in H2FY26, boosted by the festive season.
GST cuts, lower inflation, and tax reliefs are expected to increase demand for credit.
Latest data shows credit growing at 10.2% Y-o-Y and deposits at 10.1% Y-o-Y.
Banks are offering attractive loan deals to entice customers.
HDFC Bank and Axis Bank are providing special offers on cards and easy payment options.
- Who
- Banks, HDFC Bank, Axis Bank and Bank of Baroda
- What
- Expect increased credit growth due to the festive season, GST cuts and tax reliefs.
- When
- Anticipated in the second half of FY26 (September 2025 - March 2026)
- Where
- India
- Why
- To capitalize on increased consumer spending and demand for loans.
- Credit Growth (Y-o-Y, Latest Data)
- 10.2%
- Deposit Growth (Y-o-Y, Latest Data)
- 10.1%
- Credit Growth Estimate (FY26)
- 10.4-11.3%
- BoB Car Loan Interest Rate
- 8.15%
- BoB Mortgage Loan Interest Rate
- 9.15%
