Banker's outlook on loan demand improves for Q2FY26

Reserve Bank of India or RBI released the results of 32nd round of its quarterly Bank Lending Survey (BLS), which captures qualitative assessment and expectations of major scheduled commercial banks on credit parameters (viz., loan demand as well as terms and conditions of loans) for major economic sectors. Bankers' outlook on loan demand improved for Q2:2025-26, they expect more loan demand particularly from agriculture, mining and quarrying, manufacturing, and retail/personal loan segments. Bankers expect some easing of loan terms and conditions, especially for the manufacturing and services sectors. Across major sectors, bankers' sentiments on loan demand remained upbeat till Q4:2025-26. The current easy loan terms and conditions are expected to continue in the second half of 2025-26.

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