Credit growth surpasses deposits in early September, retail loans to drive FY26 expansion

Credit growth in the banking sector surpassed deposit growth in early September, although it lagged behind the previous year's expansion. This slowdown is attributed to factors like muted private sector capital expenditure and reduced lending to corporates. Lenders anticipate a surge in retail credit demand during the upcoming festival season, with overall credit growth projected at 11-12% for FY26.