New Delhi, Aug. 7 -- Loan demand across major sectors witnessed a seasonal moderation in the first quarter of FY26, however bankers expect a recovery in the upcoming quarters, according to the Reserve Bank of India's latest Bank Lending Survey (BLS).

The quarterly survey, conducted among senior loan officers of major scheduled commercial banks, assessed credit conditions during Q1 of 2025-26 and collected expectations for Q2 to Q4 of the fiscal year.

The latest survey covered 30 major scheduled commercial banks, accounting for over 90 per cent of total bank credit in the country.

Most of the bankers reported a softening in loan demand across key sectors during the April-June period. The net response for overall loan demand in Q1 stood ...