New Delhi, Aug. 10 -- The robust growth in bank credit in 2026 has raised hopes of a credit revival. In September 2025, year-on-year growth in non-food bank credit crossed into double-digit territory and has since firmed up steadily. For the fortnight ending 15 July, credit growth crossed 17%-a rate not seen in two years.

The uptick can be attributed to a confluence of favourable factors, including lower lending rates, supportive tax policies and better systemic liquidity. It is early days yet: a few months of strong growth do not make a boom. But there are reasons to believe this could be the beginning of a lasting credit recovery.

A 14-15% or higher growth in bank credit has historically been associated with strong economic growth. Th...