Current Affairs - Finance - Discussion

CRISIL has forecasted that India's banking sector will experience a credit growth of 12-13% in FY26, which is slightly higher than the projected growth of 11-11.5% for FY25. This positive outlook is attributed to several factors, including regulatory support, tax cuts that boost consumption, and softer interest rates encouraging borrowing. Additionally, regulatory adjustments like the rollback of risk weights for loans to non-banking financial companies (NBFCs) and a delay in implementing stricter liquidity norms are expected to further enhance credit flow and support this growth rate.