Bankers See Stronger Loan Demand Across Sectors in Q3FY27
Indian banks expect credit demand to strengthen across most major sectors during Q3FY27, with agriculture emerging as the notable exception, according to the Reserve Bank of India’s (RBI) latest Bank Lending Survey. The findings indicate continued optimism among bankers about lending activity despite changing monetary and economic conditions.
The 37th round of the RBI’s Bank Lending Survey captures the assessment and expectations of senior loan officers from major scheduled commercial banks. According to the survey, expectations for loan demand improved across sectors for the October-December quarter, with seasonal factors identified as an important driver.
Bankers also expect overall loan terms and conditions to remain broadly unchanged in Q3FY27 compared with the previous quarter. During Q2FY27, lenders had reported improved optimism regarding credit demand across major sectors, along with some easing in lending terms at the aggregate level.
The positive outlook extends beyond the current quarter. Banks continued to express optimism about credit demand in Q4FY27 and Q1FY28, suggesting expectations of sustained borrowing activity over the coming quarters.
The survey provides an important forward-looking indicator for credit conditions because it captures lenders’ expectations before actual credit data become available. Stronger expected demand across manufacturing, infrastructure, services and retail lending could support overall credit expansion, while weaker expectations for agriculture highlight the need to monitor developments in rural and farm-sector financing.
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