New Delhi, April 19, 2026: The latest FICCI-IBA Bankers’ Survey indicates a constructive outlook for India’s banking sector, with lenders expecting steady credit expansion in the near term, supported by resilient economic activity and improving asset quality.
According to the survey, banks foresee continued momentum in loan growth, driven largely by retail and SME lending segments, which remain the primary engines of credit expansion.
Most respondents expect overall credit growth to remain in a healthy range, reflecting confidence in domestic demand conditions despite global uncertainties.A significant portion of lenders believe retail credit will continue to outperform, with expectations of strong double digit growth in the segment over the coming period.
The survey also highlights that services and SME sectors are likely to maintain steady borrowing demand, further supporting overall credit expansion.At the same time, banks are undergoing a major strategic transformation as technology adoption accelerates across operations and risk management systems.
Artificial intelligence is emerging as a key disruptive force, with lenders increasingly using AI for credit underwriting, collections, risk assessment and customer onboarding.Financial institutions believe AI will significantly improve efficiency and decision making, while also reshaping traditional banking workflows over the next few years.
However, cybersecurity has emerged as the most critical concern for the sector, with a large majority of banks identifying it as a top operational risk.Rising digital transactions and AI driven systems have increased exposure to cyber threats, making security investment a priority area for banks.
Alongside technology risks, green finance is gaining strong traction, with renewable energy emerging as the most promising area for sustainable lending opportunities.Banks are increasingly shifting focus toward financing clean energy projects, aligning with India’s broader climate and sustainability goals.
The survey suggests that environmental, social and governance linked lending is becoming a core part of long term banking strategy.While growth expectations remain positive, lenders are also preparing for structural changes in risk management frameworks driven by digital transformation.
Experts note that banks are balancing optimism in credit demand with caution over emerging technological and operational risks.Overall, the findings point to a sector that is expanding steadily but simultaneously adapting to a rapidly changing financial ecosystem shaped by AI, cybersecurity challenges and green finance priorities.
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