Indian Banks Report Strong Recovery in Credit Growth During December Quarter
Systemic credit growth in India recovered to 11.4 percent in the December quarter. This rebound follows a slowdown caused by stricter regulatory measures.
Insights:
Lenders across IN 
INare reporting a notable rebound in credit expansion for the quarter ending December 2025. Systemic credit growth recovered to 11.4 percent year-on-year, marking a significant rise from the low of approximately 9 percent recorded in May 2025. This recovery signals renewed demand for credit in the national economy after a period of deceleration that followed the implementation of stricter regulations.
INare reporting a notable rebound in credit expansion for the quarter ending December 2025. Systemic credit growth recovered to 11.4 percent year-on-year, marking a significant rise from the low of approximately 9 percent recorded in May 2025. This recovery signals renewed demand for credit in the national economy after a period of deceleration that followed the implementation of stricter regulations.The recovery is particularly evident in the performance of major private lenders. HDFC Bank Limited saw its gross loans rise 11.9 percent year-on-year in the December quarter. This represents a steady acceleration from the 9.9 percent growth reported in the September quarter and the 6.7 percent growth seen in the June quarter. The lender, which merged with its parent HDFC in July 2023, has been under pressure to balance its loan-to-deposit ratio following the merger.
