Loan demand moderated in Q1 FY26, but bankers expect strong growth and easy terms across key sectors in the coming quarters.

• Q1 FY26 saw a seasonal dip in loan demand; lending terms largely remained easy across most sectors.
• Outlook for Q2 improves with higher credit demand expected from agriculture, manufacturing, mining, and retail segments.
• Easy lending conditions are likely to persist through H2 FY26, supporting sustained credit growth across major economic sectors.