Regulatory easing to support 10.8% credit growth in FY26: Icra

The incremental credit is likely to rise 10.8 per cent to Rs 19-20.5 lakh crore in the current fiscal compared to Rs 18 lakh crore or a 10.9 per cent growth in 2024-25, according to rating agency Icra. In a release on the Indian banking sector outlook, the agency said it expects the regulatory easing seen in recent months to support a credit expansion of about 10.8 per cent in FY2026. Such measures include the repo rate cut, deferment of proposed changes in the liquidity coverage ratio (LCR) framework and additional provisions on infra projects, along with the roll-back of increased risk weights on lending to unsecured consumer credit and non-banking financial companies (NBFCs). "Besides this, the durable liquidity infusion by the Reserve Bank of India through open market operations (OMO) by way of purchases of Government bonds and forex swaps with banks, would aid the liquidity and faster transmission of the ongoing cut in policy rates," it said. The persisting challenges in depos