New Delhi, Jan. 6 -- India's banking sector is entering 2026 on a relatively stable footing, supported by a clear shift in lending strategy towards secured retail credit, rising focus on MSMEs and improving asset quality, according to Crisil Intelligence's Banking Sentimeter report for the current month released here on Tuesday.
Gross banking credit outstanding rose steadily through 2025, reaching Rs 195.27 trillion by late November, compared with Rs 182.44 trillion at the end of March. Retail credit remained the backbone of growth, accounting for nearly one-third of total outstanding credit.
However, the nature of retail lending has undergone a marked transformation, with banks increasingly favouring secured products over unsecured loans...