December 24, 2025
Indian banks reported strong credit growth driven by retail lending, infrastructure financing, and demand from small businesses. Public sector banks showed improved asset quality with lower non-performing assets, reflecting years of balance sheet clean-up. Private banks also expanded lending portfolios, particularly in housing and automobile loans. Analysts said sustained credit growth indicates improving economic activity and consumer confidence. However, banks remain cautious about unsecured lending and are closely monitoring asset quality amid global uncertainties.