New Delhi, April 29 -- India's banking sector is expected to sustain credit growth momentum in the coming quarters, even as the prevailing crisis in West Asia has tempered banker sentiment for June quarter of the Financial Year 2026-27, according to the Department of Economic Affairs' monthly economic review - April 2026 . While loan demand and ease of terms have moderated, underlying financial stability indicators remain strong, supporting a positive outlook for FY27, the report stated.

The trajectory of scheduled commercial bank's (SCB) credit has shown a consistent upward trend since May 2025, with growth accelerating to 17.1 per cent year-on-year as of March 31, 2026, up from 11 per cent a year ago. The expansion has been broad-based...