After a subdued first half marked by geopolitical headwinds and tepid project activity, corporate lending by banks is poised for a revival in the second half of FY26. The Reserve Bank of India’s (RBI) recent policy measures, coupled with government’s implementation of Goods and Services Tax (GST) 2.0, are expected to unlock fresh credit demand from India Inc.

“Lending to corporates will pick up in the second half as infra spending was low due to the monsoon. With the noise around US tariffs settling down and the GST cut, we believe spending will go up,” said a senior executive at the Tata Group.

C S Setty, chairman, State Bank of India said post-policy to television channels that he expects the credit growth to improve by 1%-2% from the earlier estimated 11%-12%.

Vivek Iyer, Partn

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