India's banking sector is set to experience credit growth of 11-13% in the first half of 2026, with retail lending emerging as a significant contributor. According to the FICCI-IBA Bankers’ Survey, 52% of banks anticipate retail loan growth exceeding 13%, while only 8% expect growth below 9%. The survey, which included responses from 24 various banks, highlights a positive outlook on credit demand, bolstered by improved asset quality and resilient economic activity. Small and medium enterprises (SMEs) are also expected to see strong double-digit growth in credit demand, reflecting a recovery in business activity. Lending to services, particularly in real estate, logistics, and tourism, is expected to remain robust, while industrial credit growth is projected at a more moderate 9-13%. Despite the optimistic outlook, cybersecurity remains a major concern for bankers, with 71% citing it as their top risk. The survey indicates a status quo in policy rates over the next six months, suggesting that lenders are content with the current monetary stance.