The Reserve Bank of India (RBI) has released the results of the 33rd round of its Quarterly Bank Lending Survey (BLS) of planned commercial banks on credit demand and credit conditions. The survey, conducted for the second quarter of 2025-26, reveals constant optimism among bankers about the rising claim of the loan in the most important sectors of the economy.
The survey conducted during the Q2 FY26, reflects loan assessments for the current quarter and the expectations for the coming quarters Q3 and Q4 FY26 and Q1 FY27.
The findings of the survey indicate that in the second quarter, bankers observed an improvement in the demand for loans in large sectors, including the agricultural, production, infrastructure and service sectors. “Bankers remained optimistic about the overall demand for loan in Q3: 2025-26, driven by a higher demand for loans expected from agriculture, mining and quarries, production, infrastructure and service sectors,” the survey noted.
The net response for the total demand for loans was 38.9 percent in Q2FY26, higher than 37.5 percent in the previous quarter. The demand for agricultural loans significantly improved to 39.7 percent, while production rose to 37.5 percent. The service sector also saw robust optimism at 35.2 percent. Retail or personal loan question was 37.5 percent.
Looking ahead, bankers remain cheerful about the credit environment. For the third quarter of FY26, the survey projects further improve the demand for loans in all sectors, with the total expectations that increase to 42.6 percent. Sectors such as agriculture (44.8 percent), production (44.6 percent) and infrastructure (34.5 percent) are expected to be important factors of this growth.
Optimism remains up to Q4 FY26 and Q1 FY27, where bankers project sustainable demand in different sectors. The survey notes the net answers of 44.6 percent for both quarters, which reflects a strong sentiment in credit growth. In addition to the increasing demand for loan, the study also believes that most bankers for the borrowing for the borrowing to remain favorable.
During Q2FY26, the majority of the respondents did not change loaning terms, while a positive net response of 9.3 percent suggested a slight relaxation.
In the future, the lenders expect further relaxed with the net response that rises to 18.5 percent in Q3 FY26. The agricultural, production, services and retail sectors are expected to benefit from these accurate conditions.
For the extensive prospects, simple credit conditions are expected to maintain, with net answers of 20.4 percent for Q4 FY26 and 24.1 percent for Q1FY27. The 33rd round of the BLS covered 30 large planned commercial banks, which represent more than 90 percent of the total credit in India.
Published on October 3, 2025
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