New Delhi, April 7 -- India's banking sector is set to close Q4FY26 on a steady footing, with credit growth holding up and deposit traction showing signs of improvement, according to Nuvama's latest sector preview.

The report underscores that "loan growth sustained the momentum supported by liquidity buffers and residual CRR benefits," highlighting the system's resilience despite evolving macro conditions.

Business updates released so far point to healthy credit expansion across segments. Private banks have reported loan growth of about 13 per cent year-on-year, while public sector banks have clocked a stronger 14.4 per cent YoY rise.

On the liabilities side, deposit growth has picked up pace after a relatively subdued period. Nuvama a...