New Delhi, Jan. 2 -- Credit growth in the country is expected to remain at around 12 per cent year-on-year in FY26 and improve to nearly 13 per cent in FY27, while deposit growth is likely to stay steady at about 10 per cent year-on-year in FY26, according to a report by Motilal Oswal Financial Services.

The report said that system credit growth has started showing early signs of revival. As of December 12, 2025, system credit growth improved to 11.7 per cent year-on-year, with year-to-date growth at 7.7 per cent. This marks a recovery from the low of 8.9 per cent recorded in May 2025.

It stated "Credit growth gaining traction; margin trajectory mixed... Deposit growth stable at 9.7 per cent".

The report highlighted that growth momentu...