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PDF - Bank Lending Survey for Q2:2025-26 ()
Date : Oct 01, 2025
Bank Lending Survey for Q2:2025-26

Today, the Reserve Bank released the results of 33rd round of its quarterly Bank Lending Survey (BLS)1, which captures qualitative assessment and expectations of major scheduled commercial banks on credit parameters (viz., loan demand as well as terms and conditions of loans) for major economic sectors2. The latest round of the survey, which was conducted during Q2:2025-26, collected senior loan officers’ assessment of credit parameters for Q2:2025-26 and their expectations for Q3, Q4 of 2025-26 and Q1 of 2026-27.

Highlights:

A. Assessment for Q2:2025-26

  • Bankers assessed an improvement in loan demand across major sectors during Q2:2025-26 (Chart 1 and Table 1).

  • Majority of the responding bankers indicated “no change” in loan terms and conditions (Table 2).

B. Expectations for Q3:2025-26

  • Bankers remained optimistic about overall loan demand in Q3:2025-26, driven by higher loan demand expected from agriculture, mining & quarrying, manufacturing, infrastructure, and services sectors (Table 1).

  • Overall, easy terms and conditions for loans are expected to prevail during the quarter (Table 2).

C. Expectations for Q4:2025-26 and Q1:2026-27

  • Bankers remain upbeat on loan demand during Q4:2025-26 and Q1:2026-27 (Table 3) and they continue to anticipate easy loan terms and conditions in Q4:2025-26 and Q1:2026-27.

Chart 1: Loan Demand -All Sectors

Table 1: Sector-wise Loan Demand - Net Response3
(per cent)
Sector Assessment Period Expectations Period
Q1:2025-26* Q2:2025-26 Q2:2025-26* Q3:2025-26
All Sectors 37.5 38.9 41.1 42.6
Agriculture 30.0 39.7 36.7 44.8
Mining and Quarrying 12.1 1.9 8.6 14.8
Manufacturing 36.2 37.5 43.1 44.6
Infrastructure 22.4 20.7 25.9 34.5
Services 33.9 35.2 33.9 37.0
Retail/Personal 27.8 37.5 42.6 39.3
* Based on the previous round’s response.

Table 2: Sector-wise Loan Terms and Conditions - Net Response
(per cent)
Sector Assessment Period Expectations Period
Q1:2025-26* Q2:2025-26 Q2:2025-26* Q3:2025-26
All Sectors 12.5 9.3 16.1 18.5
Agriculture 11.7 15.5 15.0 19.0
Mining and Quarrying -1.7 0.0 -1.7 3.7
Manufacturing 17.9 12.5 21.4 21.4
Infrastructure 10.0 6.9 13.3 10.3
Services 16.1 18.5 23.2 22.2
Retail/Personal 22.9 18.5 22.0 22.2
* Based on the previous round’s response.

Table 3: Sector-wise Expectations for Extended Period - Net Response
(per cent)
Sector Loan Demand Loan Terms and Conditions
Q4:2025-26 Q1:2026-27 Q4:2025-26 Q1:2026-27
All Sectors 44.6 44.6 20.4 24.1
Agriculture 45.0 41.7 17.2 19.0
Mining and Quarrying 12.5 19.6 3.7 3.7
Manufacturing 39.7 43.1 26.8 26.8
Infrastructure 35.0 38.3 19.0 17.2
Services 42.9 46.4 18.5 18.5
Retail/Personal 41.7 32.8 20.7 21.4

Note: Please see the attached excel file for detailed time series data.

1 The results of 32nd round of the BLS with reference period as April-June 2025 were released on the RBI website on August 06, 2025. The survey results reflect the views of the respondents, which are not necessarily shared by the Reserve Bank.

2 The survey questionnaire is canvassed among major 30 SCBs, which together account for over 90 per cent of credit by SCBs in India.

3 Net Response (NR) is computed as the difference of percentage of banks reporting increase/optimism and those reporting decrease/pessimism in respective parameter. The weights of +1.0, 0.5, 0, -0.5 and -1.0 are assigned for computing NR from aggregate per cent responses on 5-point scale, i.e., substantial increase/ considerable easing, moderate increase/ somewhat easing, no change, moderate decrease/ somewhat tightening, substantial decrease/ considerable tightening for loan demand/loan terms and conditions parameters respectively. NR ranges between -100 to 100. Any value greater than zero indicates expansion/optimism and any value less than zero indicates contraction/pessimism. Increase in loan demand is considered optimism (Table 1), while for loan terms and conditions, a positive value of net response indicates easy terms and conditions (Table 2).