Banks have raised their credit growth guidance for the current financial year on the back of GST rate cuts in late September, lower interest rates post 100 basis points (bps) repo cut, and the easing of banking regulations by the central bank, among other factors.

The country’s largest lender State Bank of India (SBI) noted that the various “banking reforms” undertaken by the Reserve Bank of India (RBI) in the last monetary policy committee meeting are credit accretive.

“At industry level, we must see 1 per cent additional credit growth (for FY26). We are also revising our credit growth guidance from 11 per cent to 12-14 per cent. There is robust growth across business segments in Q2...this is based on many enablers which the RBI has given and also the fiscal measures in terms of G

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