Credit growth in India is projected to reach 12% in FY26 and 13% in FY27, with deposit growth steady at 10%, according to a Motilal Oswal Financial Services report. System credit growth has revived to 11.7% as of December 2025, up from a low in May 2025, driven by consumption and supported by GST cuts and regulatory measures. Private sector banks are expected to grow 3-4% quarterly, with mid-sized banks growing faster.