New Delhi, Dec. 1 -- With the strong festive demand and the GST cuts, the loan growth in the banking system has picked up pace in October and early November, according to a latest report by IIFL Capital.

The report noted that credit demand has improved after a period of softness, with retail-led consumption emerging as the key driver of growth.

As per the report, system loan growth rose to 11.2 per cent year-on-year in October 2025, higher than 10.4 per cent in September. The momentum continued into November, the report added this suggesting that credit momentum is improving and has likely bottomed out.

It stated, "We expect credit momentum to sustain in 2H, supported by resilient consumption trends, stabilizing unsecured AQ, and a sea...