# India Banking Sector Targets Double-Digit Credit Growth

> India's banking sector forecasts double-digit credit growth despite economic headwinds.
- Title: India Banking Sector Targets Double-Digit Credit Growth
- Summary: India's banking sector forecasts double-digit credit growth despite economic headwinds. India's banking sector expects double-digit credit growth driven by…
- Keywords: india, banking sector, credit growth, retail lending, sme lending, ficci-iba, double-digit growth, Banking, Sector, Targets, Double-Digit, Credit
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/banking/indias-banking-sector-poised-for-double-digit-credit-growth-despite-macroeconomic-challenges/articleshow/135278892.cms
- Author: ET Bureau
- Published: 2026-10-28T19:23:00+00:00
- Read time: 1 min
- Topics: india, banking sector, credit growth, retail lending, sme lending, ficci-iba, double-digit growth
## Banking Sector Outlook
India's banking sector maintains a strongly constructive outlook on credit growth underpinned by resilient demand across retail, SME, industrial and services segments.

> Banking sector maintains a strongly constructive outlook on credit growth, underpinned by resilient demand across retail, SME (small and medium enterprises), industrial and services segments
## Retail and SME Lending Drivers
Retail and SME lending emerge as the clearest drivers of credit growth with over four-fifths of respondents expecting robust double-digit year-on-year growth in both segments.

> Retail and SME lending emerge as the clearest drivers of credit growth. More than four-fifths of respondents expect both retail loans and SME credit to grow at a robust double-digit pace YoY (year-on-year), and almost all expect double-digit growth in SME credit
## Resilience Factors
The banking sector demonstrates resilience through improved asset quality, stronger capital buffers, and signs of private-sector capital expenditure revival.

> The banking sector continues to demonstrate resilience, supported by improved asset quality, stronger capital buffers, sustained retail and emerging signs of a broader revival in private-sector capital expenditure
## Key takeaway

India's banking sector expects double-digit credit growth driven by retail and SME lending amid macroeconomic challenges.