The Indian banking sector is projected to experience 9-13% growth in industrial credit during the first half of 2026, according to the Ficci-IBA survey. This growth is anticipated to be steady rather than sharp, supported by a revival in capital expenditure and infrastructure demand. Public sector banks are expected to lead with credit growth of 11-13%, buoyed by improved asset quality and corporate lending momentum. In contrast, small finance and cooperative banks are more conservative, forecasting growth of 7-9% due to limited exposure to large industrial borrowers. Key sectors expected to drive borrowing include infrastructure, real estate, and manufacturing, with retail loan growth also showing strong optimism. The demand for working capital loans is projected to rise, particularly from the textiles and auto components sectors, indicating a shift towards investment-led growth rather than consumption-driven sectors. The overall outlook suggests a capex-heavy and infrastructure-led demand for term loans in the coming months.