New Delhi, Feb. 17 -- In Q3FY26, banks, including small finance banks (SFBs), exhibited credit growth slightly surpassing Axis Direct's projections, indicating a widespread lending momentum across different sectors, as stated in the brokerage's Q3 review of the Banking, Financial Services, and Insurance (BFSI) sector.

The brokerage noted that credit increased by 13% year-on-year and 5% quarter-on-quarter, with public sector undertakings (PSU) banks outperforming their larger private counterparts during this timeframe.

The growth was primarily fueled by retail lending-especially in home loans, loans against property (LAP), and gold loans-as well as secured financing for SMEs, while there were initial signs of recovery in corporate credit...