Bankers reported sustained credit demand across major sectors of the economy during Q4FY26

Reserve Bank of India (RBI) has released the results of 35th round of its quarterly Bank Lending Survey (BLS), which captures qualitative assessment and expectations of major scheduled commercial banks on credit parameters (viz., loan demand as well as terms and conditions of loans) for major economic sectors. The latest round of the survey, which was conducted during Q4:2025-26, collected senior loan officers? assessment of credit parameters for Q4:2025-26 and their expectations for Q1, Q2 and Q3 of 2026-27. Bankers reported sustained credit demand across major sectors of the economy during Q4:2025-26. Bankers indicated optimism in loan terms and conditions. However, Bankers? optimism on loan demand and loan terms and conditions moderated across sectors in Q1:2026-27 amid the West Asia conflict. As far as Q2:2026-27 and Q3:2026-27 are concerned, bankers? expectations for loan demand remain positive. They also anticipate continuation of easy loan terms and conditions.