Core Insights - Credit growth in India accelerated sharply to 14.6% year-on-year (Y-o-Y) by January 31, 2026, following a subdued start to the year [1] - Deposit growth also remained strong at 12.5% Y-o-Y during the same period [1] Banking Sector Overview - Bank credit in the economy reached ₹204.75 trillion, while deposits totaled ₹248.81 trillion, with credit expanding by ₹3.41 trillion (1.7%) and deposits by ₹3.82 trillion (1.6%) [2] - In the first fortnight of January 2026, bank credit growth slowed to 13.1% Y-o-Y, and deposit growth slowed to 10.6% Y-o-Y, with credit contracting by ₹1.88 trillion and deposits by ₹3.57 trillion [3] Recent Trends and Drivers - In the last fortnight of December 2025, banking credit grew by 14.5% Y-o-Y and deposits by 12.7% Y-o-Y, supported by GST rationalization, RBI rate cuts, and increased wholesale credit demand [4] - Credit growth is anticipated to gain further momentum towards the end of FY26 [5] Company-Specific Insights - State Bank of India (SBI) has revised its FY26 credit growth guidance upwards to 13-15% from 12-14%, with expectations of sustained double-digit growth in corporate credit [6] - The retail, agriculture, and MSME (RAM) segments are expected to be the primary drivers of growth, particularly MSME lending, which will benefit from improved trade sentiment and better data availability [6] Economic Impact - SBI's Chairman, CS Setty, highlighted that recent trade deals with the EU, Oman, New Zealand, and the US are positive for the economy, providing opportunities for Indian companies and MSMEs [7]