The stress continues in the microfinance industry, which is expected to see muted loan growth for a few more quarters till 2Q-3QFY26 before recovery begins, according to a report by Morgan Stanley.
The credit-to-deposit ratio in Indian banks has stayed below 80 per cent as credit offtake in the country continues to lag, according to a report by CareEdge Ratings.
Consumer loan growth in India appears to have bottomed out, and a faster recovery is expected with the moderation in credit costs in the coming quarters, noted a recent report by the global financial services firm Morgan Stanley.
Banks are expected to report muted earnings for the first quarter of FY26 because of weak loan growth, lower margins, seasonally soft fee income, and higher slippages weigh on performance, according to a report by IIFL Capital.
Loan growth for non-banking financial companies (NBFCs) is expected to remain steady in the first quarter of FY26, rising by 19 per cent compared to the same period last year, and 4 per cent over the previous quarter, according to a recent report by Morgan Stanley.
The Indian banks will benefit from likely uptick in loan growth as profits have witnessed a rise, according to a report by S&P Global Market Intelligence.
The credit growth of the non-banking financial companies (NBFCs) is expected to ease to 13-15 per cent in financial year 2025 (FY25) and FY2026 from the 17 per cent in the previous two fiscals, rating agency ICRA said in a report.
India's microfinance sector, which went through a tough phase in recent quarters, is now showing early signs of recovery, according to a report by Investec Equities.
Indian banks are expected to register loan growth of 12-14 per cent in the financial year 2025-26 (FY26), driven by an increase in deposit inflows, according to a report by Ambit Capital Research.
The loan growth of banking sector will stay in the range of 12 to 14 per cent in the Fiscal Year 2026 (Estimated), according to a report by Ambit Capital.
The Reserve Bank of India (RBI) has made it clear that banks cannot impose excessive charges, particularly on smaller loan amounts under the priority sector lending (PSL) category.
Despite witnessing tough conditions in the third quarter, loan growth will improve from the second half of Financial Year (FY) 2026, driven by a recovery in the unsecured segment and a gradual pickup in private capital expenditure (capex), according to a report by Mirae Asset Sharekhan.