RBI rate cuts to revive slow credit growth in FY26

India Ratings and Research anticipates a rebound in banking sector credit growth, spurred by the Reserve Bank of India's rate cuts. While credit growth slowed to 9.9% in April 2025, IndRa projects a rise to 13%-13.5% for the current fiscal year. This growth will be supported by private capex revival, even as lending to NBFCs and the retail sector slows.