India's Banking Boom: Credit Growth Accelerates to 11.5%! Experts Predict Stronger FY26 & Sector Rally

Overview

Indian credit growth has accelerated to 11-11.5%, with projections to reach 12.5-13% by FY26, according to JM Financial's Ajit Kumar. He favors banks over NBFCs for the current credit upcycle, citing strong Q2 earnings, controlled margins, and improving asset quality. While PSU banks show faster growth, private banks also show resilience. IndusInd Bank's return on assets target is now expected in FY28.